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Originally posted by dindin_4

Hi
I have a quote from a mortgage broker and have signed some initial documents from him. Now i have met another broker who is offering me a better rate and better conditions. Can i switch the brokers or can i ask the second broker to also go ahead and find me a mortgage and send the papers to my lawyer.
Is it possible to have financing from two different institutions sent to the lawyer on the same property and i choose what i feel best at the time of signing.

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Have you signed mortgage papers with the finanicial institution, if not then till that time you are liberty to borrow from anyone and use any broker.

Quote:

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Originally posted by dindin_4

Hi
I have a quote from a mortgage broker and have signed some initial documents from him. Now i have met another broker who is offering me a better rate and better conditions. Can i switch the brokers or can i ask the second broker to also go ahead and find me a mortgage and send the papers to my lawyer.
Is it possible to have financing from two different institutions sent to the lawyer on the same property and i choose what i feel best at the time of signing.

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In this time of cut-throat competition most of the brokers / bankers would like to snatch away the deal from their competitors and would offer you better rate and conditions after knowing what the competition is offering. If that's the case, you should talk candidly to your first mortgage broker and tell him/her what you are being offered by another broker and may be he/she would also get you the same rates and conditions even if he/she have to buy down the rates in order to earn your business as almost all the mortgage brokers have access to same products and rates. However, If he/she expresses inability to do so or is unwilling then you should tell him/her that you are going with another broker and he/she should not pursue the deal any further.

Secondly, you have to make sure what type of documents you have signed with your first mortgage broker. If you have only signed documents relating to mortgage with the broker and even with the financial institution you are not bound to take mortgage with them and decide to go for another broker and or financial institution. Generally mortgage brokers would not ask you to sign a 'fee agreement', However, if in this case your mortgage broker asked you to sign a document wherein you acknowledged that you would compensate him/her for the work done even if you do not take the mortgage through him/her then you are liable to pay him/her damages for the same. If not, then you are free to go any where.

Thirdly, why would you like to keep both of the persons (brokers) in limbo and want two financial institutions to do the work and send the papers to the lawyers and then decide what rate is good for you and go for that? If your first mortgage broker is not able or unwilling to match then go only with the 2nd broker so that the first broker can inform the financial institution that the deal is off.

Lastly, even if the documents are sent to the lawyers by both financial institution, you are at liberty to decide which institution to go with and the lawyer would inform the other institution that the client is not taking the mortgage with them.

Its your call.