In this episode of The Wisdom, Lifestyle, Money Show, host Scott Dillingham draws from his extensive experience in both banking and mortgage brokerage to compare banks versus brokers for home and investment property financing.
Scott discusses service differences: Banks offer superior customer service training but can lack flexibility in hours and speed, while brokers provide quicker approvals and extended availability due to commission-driven motivation and lender options.
He covers rates: Brokers often secure lower rates through monoline lenders and credit unions with less overhead, though banks may offer exceptions for loyal clients with all products bundled.
Options are explored: Banks are primarily A-lenders with limited alternatives, while brokers access a wider range including credit unions, B-lenders, privates, and MICs for unique scenarios like new-to-Canada or ARMs.
Fees are addressed: Banks rarely charge for standard mortgages but do for alternatives; brokers shouldn't for A-lending (Scott advises avoiding those who do), though complex B or private deals may incur lender/broker fees.
Preapprovals: Banks often provide basic rate holds, risking surprises; brokers conduct thorough reviews with documents for higher accuracy.
In 2025, Canada's mortgage market features variable rates declining to 4-5% amid Bank of Canada cuts to 2.25-2.5%, with over 2 million renewals facing higher payments despite easing—favoring shoppers comparing banks vs brokers for optimal terms, per CMHC, TD Economics, and Mortgage Sandbox forecasts.
This episode empowers listeners to make informed lender choices based on their needs, highlighting Scott's transition from bank to brokerage for greater flexibility and client focus in Ontario's 2025 economy.
Guest Bio
Scott Dillingham is the host of The Wisdom, Lifestyle, Money Show and founder of LendCity Mortgages in Windsor, Ontario, specializing in home and investment property financing. With years in banking followed by brokerage, Scott leverages his expertise to guide clients through lender comparisons, emphasizing no-fee A-lending and tailored solutions. Passionate about education and client success, he shares insights from his commission-driven career. Connect with Scott at lendcity.ca, call 519-960-0370, or listen to more episodes for financial wisdom.
Scott Dillingham is the host of The Wisdom, Lifestyle, Money Show and founder of LendCity Mortgages in Windsor, Ontario, specializing in home and investment property financing. With years in banking followed by brokerage, Scott leverages his expertise to guide clients through lender comparisons, emphasizing no-fee A-lending and tailored solutions. Passionate about education and client success, he shares insights from his commission-driven career. Connect with Scott at lendcity.ca, call 519-960-0370, or listen to more episodes for financial wisdom.
Key Takeaways
- Service: Banks excel in training ("customer is always right") but may lack drive in salaried roles; brokers, being commission-based, prioritize flexibility, with mobile bank reps or brokers better than branch staff for availability.
- Hours and Speed: Banks have fixed schedules, often delaying approvals (e.g., 2-3 weeks); brokers switch lenders for faster turnaround, ideal for time-sensitive deals.
- Preapprovals: Banks often issue basic rate holds without full review, risking inaccuracies; brokers verify documents upfront for precise qualifications, sometimes securing lender commitments.
- Rates: Brokers typically offer lower rates via low-overhead lenders (8-9/10 cases); banks can provide unadvertised exceptions for bundled clients.
- Options: Banks are A-lenders with limited alternatives (e.g., no rooming houses without exceptions); brokers access diverse lenders including credit unions, B-options, privates, and MICs for unique programs.
- Fees: Avoid brokers charging for standard A-mortgages (red flag); banks don't for basics but do for alternatives; B/private deals often include lender fees, with potential broker fees for complexity.
- Exceptions: Banks may bend rules for loyal clients (e.g., approving non-standard properties); brokers lack this but compensate with broader lender networks.
- Advice: For exceptions and bundled perks, choose banks; for options, lower rates, and speed, opt for brokers—shop around and question fees.
Resources and Links
- LendCity Mortgages: https://lendcity.ca/ – Mortgage comparisons, applications, and contact for Ontario financing.
- Scott Dillingham Contact: Call 519-960-0370 – Direct line for questions on banks vs brokers.
- Bank of Canada: https://www.bankofcanada.ca/ – Official rate announcements and economic insights.
- CMHC: https://www.cmhc-schl.gc.ca/ – Housing market reports, including 2025 renewal trends.
Call to Action If Scott Dillingham's breakdown of banks vs brokers in 2025's easing rate environment helps you decide on your next mortgage, reach out at lendcity.ca or 519-960-0370 for a no-obligation comparison. Share this episode with homebuyers navigating renewals—tag us on social media! What's your biggest lender question? Leave a review on Apple Podcasts or Spotify to boost visibility for Canada mortgage trends 2025, fee avoidance tips, or brokerage advantages. Tune in next week for more on smart financing and lifestyle.
- (00:05) - Introduction to Banks vs Brokers
- (09:50) - Service Comparison: Banks vs Brokers
- (09:56) - Exploring Rates Between Banks and Brokers
- (10:55) - Options Available: Bank vs Broker
- (14:20) - Understanding Fees: What to Expect
- (17:46) - Conclusion: Choosing the Right Lender
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