Quote:
Originally Posted by squiggs96
What scares you about small lender? I've heard many people say this, and even a mortgage broker I've used goes on how small banks that offer really low rates are terrible. I just figured it was because he got a better commission with a big bank. I'm not doubting your concerns; I've just never thought to look into what they are.
My current house that I sold was financed with NBC. The house I'm about to take possession of will have an RBC mortgage and my rental property has a TD mortgage. I haven't gone with small banks either, but I am curious as to why you'd be wary of them from a mortgage point of view. Is it because of a worry that they wouldn't be able to fund the proceeds at closing? I understand being concerned of small banks not having enough funds to cash out a very large deposit, but I'd always think they'd be able to take a mortgage payment from me.
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The big banks generally pay the lowest commission, not including NBC. That broker probably said that because he doesn't want to 'play the rate game', which can be extremely competitive. Nothing wrong with the majority of small lenders.