Mortgage Broker Vs Mortgage Specialist

What is the difference between mortgage broker and mortgage specialist?

To the consumers who are not familiar with the mortgage space, a mortgage broker and a mortgage specialist might sound similar and would seem interchangeable – but they are not. If you are a potential homeowner, then the difference between a mortgage broker and a mortgage specialist is more important than you think.

First, it is important to consider that a mortgage broker belongs to an independent firm and belonging to such a firm allows them access to unique rates and offers from different lenders. On the other hand, a mortgage specialist is employed by a single lender and works to sell that particular institution’s products.

Moreover, unlike a mortgage specialist, who is paid by the bank to sell you specific products, a mortgage broker focuses solely on your requirements and works for you. The main role played by the broker is to establish a link between you and the lender and they filter through the best offerings for you based on your financial situation and your credit report. One of the major reasons to work with a mortgage broker is that the services provided by them are free because they are paid by the lender once the ideal mortgage product has been found.

Mortgage brokers treat their clients with great respect and pay attention to each of their requirements because they are working for you and also because most of the brokers are self-employed and rely on referrals to become successful. A mortgage specialist would not go out of their way to cater to your needs, but a mortgage broker will do so because their business is done through word-of-mouth. Subsequently, this results in the client obtaining the best personalised experience.

An important factor to note is that a mortgage specialist does not require any formal training or licence to complete their job. On the other hand, it is imperative that mortgage brokers obtain a licence before starting their business and catering to the needs of the clients. In addition, there are some lenders who do provide in-house training to mortgage brokers which assists them in obtaining their licence. Furthermore, a mortgage broker also continues to maintain their education through licence renewals and educational courses, resulting in them providing you with expert and trustable advice.

Since a mortgage broker is employed by an independent firm, they have access to more than 90 lenders, and this ensures that they are able to provide services that meet the requirements of each of their clients. But a mortgage specialist only has access to their particular lender’s products. Therefore, having such an immense access to lenders, mortgage brokers are able to provide you with different rates and mortgage terms that suit your needs.

Another area where mortgage brokers are differentiated from mortgage specialists is that mortgage brokers solely focus on selling mortgages to potential homeowners, while mortgage specialists and bank staff are often trained to focus on cross-selling. If you have booked an appointment with a mortgage specialist for discussing mortgages, they would try to sell you other products as well such as credit cards, RRSP, insurance, lines of credit etc. Although this might be beneficial for a prospective homeowner, they might find it overwhelming in certain scenarios.