An Unconventional Guide on Mortgage Brokers

mortgage broker

In a country of population 1.3 billion, many people have many different needs. Someone might be offering a service that another wants to use, but they cannot reach each other due to our country’s enormous population. For this purpose, we have brokers. Brokers are third-party entities who know someone who provides a mortgage broker service and someone else who needs it.

The job of the broker is to establish a connection between these two parties and process the transaction. A mortgage broker refers to an intermediary who manages a mortgage loan process between a lender and a borrower. He/ She understands the borrower’s requirements and tries to get them the best loan against property.

Advantages of working with a mortgage broker.

The home loan merchant has been in the business for quite a while. They know the inside outs of it. They are well aware of the procedures to be followed. So, working with a mortgage broker will save you a lot of time and money as they know exactly what to do. He/ She will save you the hassle of long queues during registrations and protect you from any frauds which might take place during the process.

Because they are in this field, mortgage brokers have strong connections who can get you good deals. These deals may not always be available if the client approaches a party. They are well acquainted with many different lenders and can help you find the best-suited lender for your needs. But since we are all different, your ideas may not always align with your broker’s ideas. You might have a difference in opinion. So, it is essential to do your research before you take the deal.

If you work with a lender, they may charge you extra money in the form of different fees like application fees, origination fees, etc. But if you go through a broker, you might avoid these, which can save you hundreds to thousands of rupees.

Disadvantages of working with a mortgage broker.

A mortgage broker receives his/ her fees from the client. So, even though they might have the best intentions, sometimes the brokers land clients into deals that are not best suited for them. They are not able to afford it after a few years. It is essential always to have your knowledge about the industry.

Some lenders tend to offer the same deal to a client as well as a mortgage broker. This implies that if you go through a mortgage broker, you will have to pay more than what you would pay if you went directly to the lender. If you avail of a mortgage broker’s services, you must pay his Commission, which is at least 0.5-1% of the total loan.
In some cases, the lenders do not offer services via mortgage brokers. They go to the client for a trade. This is beneficial as the broker fees are eliminated, and you can have a more transparent transaction with the concerned party. This also gives you a chance to learn about the loans and financing world on your own.

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Going through the broker might not be the best deal for you because what they have in mind might not be the same thing you have in mind. So, you should discover your needs and find what suits you best. No matter how much you explain it to the broker, they cannot read your mind and find a deal that is profitable to them and the lender. Sometimes the brokers are associated with lenders who provide them fees for bringing in business. Even if the deal is not the best for you, the broker might get you that deal because they repaid Commission fees on it by the lender.


Choosing to avail of the services of a mortgage broker is like online shopping. You tell them what your requirements are. They then approach different lenders and land you the best deal for your mortgage loan against property. But just like the delivery charge, they charge some commission. Sometimes you get a better deal online than you do in the shops. But there are some shops which are not listed online. The borrower needs to be well aware of the world of finance. A broker can be a boon or a bane.

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