Should I use a bank or a broker?

Why brokers can secure the best deal

From the day our minds are mature enough to ponder complex thoughts, we can’t help them from swaying back and forth - between the two “big” questions: “why am I here?” and (much more importantly) “should I use a bank or a broker?”.

Worry no more!

Blink Mortgage is here to bring you satisfying answers in blog form!

Let’s do this.

There’s a few fundamental reasons why it makes more sense to use a broker than a bank:

Upwards facing shot of tall office buildings with sky in the background

1. Mortgage brokers have access to bank mortgage products.

A lot of people are unaware of this - but it’s true! Mortgage brokers have access to hundreds of different lenders, including the majority of major banks. If there’s a great deal at a bank, you’ll likely still have access to it - without all the hassle of dealing with the bank (making appointments, driving back and forth, etc) - we call that a win-win.

2. Mortgage brokers have access to lenders with more lenient qualifying criteria than banks.

A large part of our lending network is specialty lenders. These are lenders that have specific criteria they are looking for when approving mortgage loans. Say you’re interested in flipping houses, so you only want a short term mortgage with no breakage penalties - we have a lender specifically for that! If you want to learn more about the math behind how how lenders qualify borrowers, check out our meth behind the mortgage blog.

Everyone’s situation is unique, and with a mortgage broker’s unique array of lenders, the likelihood of being able to find a match for your home financing increases greatly.

3. One credit check.

Brokers can send your application to multiple lenders without starting your app from scratch each time. This not only means less potential legwork for you, but also that your credit bureau is only pulled one time instead of being pulled by each individual bank/lender - which can hurt your credit score.

4. Mortgage brokers represent your interests.

As mortgage brokers, we’re paid a commission by the lender that we place your mortgage with. This means that we’d LOVE for you to get a mortgage! We’ll work extra hard to make that happen. On the other hand, a bank’s mortgage professional is paid to represent the bank’s interests, exclusively - they definitely won’t tell you that the bank down the street has a way better deal!

Mortgage brokers have a responsibility - to the best of our abilities - to protect you, the borrower, from fiduciary (financial) harm. In fact, our governing bodies have strict rules that state that all brokers are required to act in a client’s best interest. These policies align with the spirit of Blink Mortgage. We’ve taken this a step further with our own internal mandates to “de-jargonize” the mortgages industry as much as possible. This helps our customers understand exactly what’s up with their mortgage, as well as to add some much needed transparency to the entire mortgage process.

5. Open banking and technology

Mortgage brokers have an inherent advantage of being more agile in terms of technology than large banks. Banks struggle with immense “tech-debt” (their technology is so old and massive it can be very had to update) which causes them to lag behind in the innovation sector. With the new paradigm of open banking becoming a reality in a lot of countries, it will eventually become possible to get a mortgage by simply pushing a few buttons on your phone. We’re a ways off from that due to legislation, but the moment that’s possible, Blink Mortgage will be there!

That doesn’t mean we’re not still innovating in the meantime! We’ve already created lots of innovations (many of them industry firsts) for our clients.

For example, every Blink Mortgage client receives:

  • A Perfect Mortgage Product: Upon applying for a Blink Mortgage, our algorithms figure out the most suitable product for your situation. Our system reaches this conclusion taking in far more variables and information that a typical broker or banker ever could when considering a product fit. No more hours of research anymore or bounce from website to website only to be told you don’t qualify for the advertised rates - our system shows you exactly what your mortgage product and interest rate will be, every time.
  • No Breakage Penalties: At Blink Mortgage we value our customers. A lot. In fact, we’re madly in love with you (but don’t tell anyone - it sounds so strange to finally say that out loud)! In fact, we value you SO MUCH, that we promise, if the need arises for you to break your mortgage we will cover your breakage penalties (usually thousands of dollars) if you do your next mortgage with us. :)
  • Lifetime Mortgage Monitoring: We legitimately made a computer algorithm that crunches numbers all days looking for ways to save you money by reducing the overall cost of your mortgage. For example, if rates change you’ll receive an update letting you know that if you refinance you’ll save $X - how cool is that!?

… and lots more

As for that other nagging question - “why am I here?” - well, the answer to that is relatively simple:

Thanks for reading! If you have any questions, just give us a shout. We’re always happy to talk mortgages. Or philosophy. :)

Need more convincing? Check out our videos on 5 mortgage lessons everyone should know for more reasons to choose a broker!

Ready to go?