Bank or mortgage broker? The Home Trust Mortgage Company works with Steven Crews team of mortgage pros to get you the best mortgage for your money. Purchasing a home is serious business, and you need to have complete confidence in the people you’re dealing with.
You are about to make the most important financial investment of your life. Your interests must trump all others. Will a representative from a major bank really go out of their way to get you the best mortgage? Or is a mortgage broker a better choice as fiduciary? As what?!
The term “fiduciary” is almost identical in meaning to the more commonly heard word “trustee”. Like a trustee, someone who is acting as a fiduciary is expected to defend the best interests of their client, or anyone who is under their care and protection. An individual who accepts the fiduciary duty of trustee is expected to uphold the highest moral standards when negotiating any business deal.
In business, there are many examples of fiduciary relationships. An asset or pension fund manager is expected to do everything possible to protect their clients money, and invest it wisely. Individuals who sit on the board of directors for a corporation have a fiduciary relationship with the shareholders of the company.
Fiduciary duty of care demands that the trustee or agent that is representing you go out of his or her way to ensure that your interests are protected. The consequences for a breach of fiduciary duty can be very serious indeed. The damages for breach of fiduciary duty, if proven in a Canadian court, could be a severe fine for the offender, or even a semi-permanent retirement placement in a penal facility of the court’s choosing.
When you are looking to purchase property, there are many stakeholders involved and each individual’s interests may not dovetail with the others. Inevitably there will be conflicts which will require careful negotiations if a deal is to be reached.
The person who is selling a property obviously is looking to get the best possible price, while paying the lowest possible commission. They may, or may not have the luxury of time with regards to how fast they wish to see the sale go through. While some people are willing to sell their homes by themselves, the vast majority will enlist a real estate agent to assist them in the process.
The real estate agent for the seller is in a position similar to that of a “trustee”. They will be expected to negotiate the highest price for their seller. Of course, as they work on commission, and it is also in their best interest to do so. In a fiduciary relationship, both parties may profit from the relationship (if previously agreed to). Fiduciary duty of care basically means that the trustee or fiduciary may gain from the arrangement with their client, but must act first and foremost in their client’s interest.
You too have likely found a real estate agent who understands your needs and financial limitations, and has earned your trust. Of course, they too will receive compensation once a deal is successfully negotiated. They will work hard to find you the most bang for your housing buck, so to speak.
When it comes to negotiating the terms of a mortgage, who can you trust? Big banks make their (considerable) profits from big deals with big clients. They will deal with customers like me and you, but on their own terms. That’s why you have to fight tooth and nail to get a reasonable interest rate. Assuming of course, that you have the tens of thousands of dollars required for a down payment.
By contrast, a local mortgage broker has contacts with a variety of financial institutions, each with unique lending policies. Choosing to go with a mortgage broker means partnering with a professional who has access to hundreds of different sources of mortgage financing. And they are working for you, not the institution looking to make money off the mortgage they (may) offer you. Call Calgary’s best broker team at 403 870 2669 today, or visit mymortgagebroker.com.