Can mortgage brokers negotiate better deal for the same product?

Do mortgage brokers have extra negotiating powers?

For a new purchase or refinance, can a mortgage broker arrange a better deal (lower interest or more cashback) compared to what is advertised on lender's website?

I understand there are clear cut advantages for engaging a mortgage broker. For example, a MB can present the application in more organized way for better chances of approval or help you chose a more suitable product. However, my question is specific to a chosen product from a chosen lender.

I have lenders calling me directly (because I filled out callback forms on lender's website) who are offering me what is already advertised on their website. Basically no discount on what is advertised.

If I engage a MB, can they negotiate with same lender for same product and get me better deal( lower rate or more cashback than what is advertised)?

Are there any lenders that are open to negotiations (from what is advertised)? if yes, who are they and do they negotiate with clients and MB both or just MBs?

Please note, this question is about refinance/new purchase only (not about negotiating lower rate on existing mortgage with existing lender).

 

Lender offers by email etc dont mean a lot. You need to do a full app and get a formal approval. But do that a few times and your credit file is wolverined.

 

Depends on the lender but yes

 

Thanks @Terry_w. Can you name a few lenders?

 

most

 

I would say most would be able to get better than advertised.
Just like most bankers direct would be able to offer better than advertised.
Wouldn't work for all banks and products.

 

More cashback? = No
Lower Rate? = Yes

 

Than advertised rates - yes, brokers will do much better than this usually with most lenders, particularly for variable products.

Then rates that a good banker from that bank give you - probably not. Plenty of direct channel bankers are great. The general principle banks have is to have no channel conflict, and includes having the same rate offers direct vs brokers.

If price is the only thing you're after, a brokers value proposition generally isn't as good as it can be.

 

spot on

 

I wouldn't say that I can get a better deal for you with a lender, but I go regularly get a better deal than what people get when they negotiate directly with the bank. Either way you can potentially get the same deal, but a good broker is more likely to know what to ask for and when to push for more.

It's certainly been my observation that some bankers do this also. But if you're trying to renegotiate your rates via the call centre, you'll probably get an improvement, but not as good as you might otherwise get.