Whether one is seeking to extinguish a mortgage as quickly as possible, or to buy a bigger house, one must admit that having a lower interest rate would certainly help. In fact, zero interest sure would be nice. In fact, there are some countries where the monetary policies allowed for zero percent interest rates, but unfortunately that is not the case in Canada.
But close to zero is better for the borrower, not so good for the bank. And, when one walks into a bank and requests a mortgage, the people standing in front of the borrower are all working for the bank. They're trained to negotiate with the borrowers, to say
"hmm, your FICO score isn't very good..."
"hmm, you haven't been employed for very long..."
"hmm, you are using a lot of your credit right now..."
"and therefore, you deserve this rate:" - and out comes a number that is a higher interest rate than the borrower really deserves. The interest rate that gets quoted to the borrower is not the bank's best rate, and it takes a mortgage broker to know how to talk to the bank to get the better rate.
Mortgage brokers are professional negotiators who work not for the bank but for the borrower. They take a single client profile and know which banks will give the best rates for this profile. But in fact, because of the tremendous negotiating position exercised by mortgage brokers, the broker is able to get for the client a better rate at the same bank as the client would have gone to, simply by being in the industry and really knowing what is going on.
Transparen's web development and marketing team has recently initiated a project to create a new identity for an up-and-coming mortgage broker firm that offers low-interest-rate mortgage products in British Columbia. Transparen's marketing services are not cheap, but as the saying goes, marketing doesn't cost, it pays.
