Banker or Broker?

Broker: In general terms, a mortgage or financial broker is a “middleman” that helps to present the borrower’s financial case in the best light he or she can to as many lending sources as possible. Brokers generally get an “upfront retainer” (usually $1000 and up) without guarantees of performance. The borrower and the lender in the same transaction may compensate the broker. And the broker is often in the position of “seeking qualified borrowers” for a particular lender—there is not an incentive to find the very best deal, but rather “a deal”. And the broker often uses the shotgun effect, seeking any offers to loan and then requesting the rate and terms. It is an unfortunate phenomenon that the borrower’s request often becomes “shop worn” as the request is circulated around the financial community in which brokers are familiar. Confidentiality is minimized, the lender establishes rates and terms, and the ministry may be asked to provide “additional information” time and time again ...  more