What is the Difference Between A Richmond Hill Mortgage Broker And A Banker?

How can you differentiate between a mortgage broker and a banker? A banker is a direct lender who takes care of the loan at the bank. However, the job of a banker is to assemble all the financial information of the loan applicant and advise them on the best options. 

On the other hand, a mortgage broker is a middle person between the lender and the borrower suggesting you the options that suit your financial needs and requirements. However, a broker works with more than one lending institution. Here we are going to discuss some more differences between a Richmond hill mortgage broker and a banker. 

1.Employment factor 

A mortgage broker is a middle person between the lender and the borrower who do all the paperwork and provide the best options. However, a mortgage broker is not bound to one lending institution. He associated with multiple lending institutions. 

Moreover, a broker will evaluate your financial needs, credit score, and budget for the mortgage requirements to provide you with some best options. He will compare the rate from different lending institutions and offer you a deal that fits your budget. 

On the other hand, a banker is a direct lender who takes care of the loan amount associated with the bank, financial institution, and credit union. However, a banker works with only one lending institution. 

2.Status 

A mortgage broker is a middle person between the lender and the borrower who provide the mortgages at the budget. On the other hand, a banker is a direct lender whose job is to take care of the loan amount associated with the bank, financial institution, and credit union. 

3.Job status 

We can say that the job of a mortgage broker is not secure, stable, and permanent. On the other hand, the work of a banker is stable, secure, and permanent. 

4.Salary

If you are deciding to buy your dream house, then a mortgage broker will help you to get the best deal that fits your needs and requirements. He will do all the paperwork and negotiate as well with the lender on your behalf. However, for doing all this, he is going to charge fees from you. 

As we all know, a mortgage broker is a middle person between the lender and borrower. So he will take a commission from both lenders as well borrower. When the deal is successful, the Richmond hill mortgage broker will receive the commission. Moreover, the lending institution will also pay the broker sometimes as a percentage of the loan amount. 

On the other hand, a banker will get a fixed salary every month for providing his services. However, he is a direct lender employed by the borrower who is seeking a loan. 

5.Flexibility 

A mortgage broker will understand your financial needs and requirements to find you the best option. As we all know, a mortgage Broker works with multiple lending institutions that higher the level of flexibility in choice. On the other hand, as we all know, a banker works with only one lending institution. 

So there is a lower level of flexibility in options working with a banker. He will take care of the loan amount associated with the bank or financial institution. Moreover, a banker will help you to find the best possible option from only one institute that suits your financial needs. 

6.Reliability 

A mortgage broker works independently to navigate the right loan opportunities for you. So we can say that the level of reliability is less with a mortgage broker. On the other hand, a banker works with a specialized lending institution to find you the right option. So it means that the level of reliability is more with the mortgage banker. 

     Final thoughts 

The purpose of this article is to provide you with some differences between a Richmond hill mortgage broker and a banker. However, a mortgage broker works with multiple lending institutions, and bankers are bound to only one institute. Moreover, the broker will offer you more flexibility than a banker to find you an option that suits your financial needs.   

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