Benefits and Differences of Big and Small Banks?
Home is your one of the largest and most important financial transaction you will ever make. You only have access to Big Banks where as Small Banks offer Mortgage products only through Mortgage Brokers. Usually there is a myth that Small banks are private mortgages, charges fees, has higher rates, has hidden clauses, going down, etc. We have outlined the benefits and differences between Big Banks and Small Banks as we have access to 20+ Financial Institutions to provide you multiple options for your mortgage needs. For Home Financing, working with Mortgage Professionals and Experts can be of immense value to you. As a Mortgage Broker, professionalism, knowledge, integrity and reputation are keys to our business and our success in the industry. Not only have we built long-lasting and trusted relationships with Banks, we have strong negotiation skills and the professional tools to ensure you receive the best service possible and much more mortgage savings at NO cost to you.
| Big Bank | Small Bank |
| Big Banks are BMO, CIBC, National Bank of Canada, Royal, Scotia, TD, ATB, B2B, Servus | Small Banks are Canadiana, BluePrint, CMLS Financial, First National, Home Trust, ICICI, MCAP, Merix, Radius, RMG, Street Capital |
| Have multiple products such as Savings, Line of credit, Loans, Mortgages | Only deal with Mortgages |
| Have local branches that you can walk-in | Do not have local branch. Have customer service or online access for the mortgage information |
| Can offer Combined Mortgage Product such as Fixed + Variable Closed + Variable Open rate | Can only offer Single Mortgage Product – Fixed or Variable Closed rate |
| Has POSTED rates on website | Has BEST rates on website |
| When converting existing Variable to Fixed rate mortgage, you will need to negotiate for best rates since it is not available on website or to pay the penalty | When converting existing Variable to Fixed rate mortgage, you will know the best rates available on website |
| IRD Penalty for fixed rate is much higher due to discount provided is added back in the penalty calculation | IRD Penalty for fixed rate is much lower. Refer to http://astarmortgage.com/penalty.php |
| Only Bank can provide Customer Service after the mortgage closes | We and/or Bank can provide Customer Service after the mortgage closes |
| Mortgages registered on title usually are COLLATERAL charge (i.e. at maturity you will incur appraisal and legal fees to transfer mortgage to another financial institution) | Mortgages registered on title are STANDARD charge (i.e. at maturity you can transfer mortgage to another financial institution at NO cost) |
| Are governed by Government of Canada (OSFI) rules and regulations | Are governed by Government of Canada (OSFI) rules and regulations |
| Mortgages are insured by either of CMHC or Genworth or Canada Guaranty | Mortgages are insured by either of CMHC or Genworth or Canada Guaranty |
| Usually they are publicly traded companies | Usually they are publicly traded companies |
| Fewer documents may be needed if you have personal accounts with a Bank. When working with another Big Bank will need complete documents for mortgage applications | Will need complete documents for mortgage applications |
| Allow flexible payment frequency option | Allow flexible payment frequency option |
| Allow Pre-Payment privileges and porting of mortgages | Allow Pre-Payment privileges and porting of mortgages |
| There is NO fee except appraisal/legal where applicable | There is NO fee except appraisal/legal where applicable |
Hope this information provides you with better understanding what we as mortgage brokers actually do. If you are in the market to buy a home, or if your current mortgage is up for renewal or finally, if you are looking to refinance your existing one, contact us today! We would be happy to help you on your path as a homeowner – it is what we love to do.
With current market situation and tightening of mortgage rules by Government of Canada (OSFI), we have access to 20+ big and small banks providing you the mortgage solution and flexibility that meet your personal needs. We are Mortgage Professionals to help you plan for home ownership (i.e. purchase, pre-approvals, cash back, renewals, renovations), provide step by step guidance to prepare for mortgage financing and implement personalized savings strategies to payoff mortgage sooner. There is no cost for our expert services and to seek for professional help you can contact us at 1-888-927-8270.
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