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Difference between a real estate agent and a mortgage broker

“Always pick your yard based on your Summer lifetstyle.”


November 13, 2017 - Karl Yeh

Finding the right people to help you on the home buying journey can be challenging. In this episode, we discuss the differences between a real estate agent and a mortgage broker as well as their roles in the home buying process.

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Hi everyone and welcome to another episode of Homebuyer's School. Today, I'm joined by Kevin French with Remax Realty.

Today the question that we're going to ask is:

What's the difference between a real estate agent and a mortgage broker?

Kevin, I have got this question a lot. Some people confuse the roles, so what exactly is the difference? And what do they do?

Kevin French:                   

A mortgage broker [00:00:30] is typically going to help you, well, set your budget for the property that you're looking for and then work with the lenders to get you your financing.

Whereas, a real estate professional is going to work with you to find the home that you're looking for, the property that meets your needs and within the budget that the mortgage broker has set for you.

Would you talk to a mortgage broker first, the real estate agent first?

Kevin French:                    

Either or.

You could contact one of them first, but typically you work with a mortgage broker first. After you've contacted the real estate professional, then I put you in [00:01:00] contact with a mortgage broker.

And after you've met with a mortgage broker, they'll give you your budget that you're working within and then you can go back to the agent. And then you can start shopping from there.

Karl Yeh:                             

Do the real estate agent, mortgage broker, they usually talk to each other?

Kevin French:                    

Yeah. They typically work together. You'll end up with a mortgage broker that works closely with a handful of agents and vice versa. Then they sort of form a bit of a team. Then you get referred to the person who is best for your needs.

If you have a mortgage broker that was better with new Canadians verus [00:01:30] somebody that was better with a refinance versus some people particularly like to work with a bank, such as Royal Bank or TD and then that person would get referred back to the mortgage advisor that works with that corporation.

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Are there mortgage brokers who are real estate agents?

Kevin French:                     Yes. There are.

Karl Yeh:                             

Are there? Would you ... is it more of a field in your recommendation, do you go to someone who specializes in both or is it somebody who normally they would pick a mortgage broker [00:02:00] and then a real estate agent?

Kevin French:                    

Typically, it's best to keep them both separated. If you have two different people working on two different things, that way there's no blurred lines anywhere.

Karl Yeh:                             

Is there a ... for example, does a mortgage broker and real estate agent, would you ... do they work for the same company sometimes? Or would you go with one company that has both to keep it easy, to make it easy?

Kevin French:                    

Yeah, that's fine. Either way, the mortgage broker is going to be acting your behalf for the financing and the real estate agent is going to be acting on your behalf [00:02:30] for finding the property.

They might happen to work in the same office or in the same building and have partnerships with on a higher level, but that's fine.

Karl Yeh:                             

Okay. Do you see any other benefits of using an agent and a broker?

Kevin French:                    

If you ... well, first of all, if you're going to the broker, they're shopping for you and they're getting you the best rate. If you're shopping with one of the big five, [00:03:00] in that instance then you're working with somebody who works for a corporation.

They're working within the confines of that set of rules. Whereas, a mortgage broker is opening the doors up to maybe 20, 30 different lenders.

Karl Yeh:                             

Who are the big five again?

Kevin French:                    

Royal Bank, CIBC, Scotia Bank, TD and BMO.

Karl Yeh:                             

Great. Perfect. Do you have anything else to add?

Kevin French:                    

No. I'm good.

Karl Yeh:                             

Awesome. Well, thank you very much. Thank you everyone for joining us and we'll catch you next time.


Your turn:

Let us know if you have additional home buying or selling questions that we can answer by submitting them in the comments section below. 

Homebuyer's School publishes new content weekly so subscribe or check back regularly for the latest information, strategies and tips from homebuying experts. 


About Kevin French:

Kevin French is a Calgary and area based realtor with a client focus.  He specializes in a stress free home selling process that is built on customer service.  Understanding that your home is one of your largest investments, Kevin employs a marketing mix that ensures you will maximize returns on your home sale. Diligent market research coupled with an in-depth understanding of the Calgary and area markets, allows Kevin to pinpoint the perfect price for your home.

In addition to perfect pricing, Kevin offers a suite of additional services such as professional photography  and an interior designer to ensure your home shows its best. Kevin French has become a trusted name in real estate because he is results driven and works closely with his clients to produce the best results.

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