August 03, 2014
The short answer simple answer are banks. Bank should be able to offer the lowest rates and they can cover all the initial set up expenses.
One may look at the bank's posted rates wonder how could this possibly be true. The truth is, the banks posted rate is not their best rate. You have to go directly to them and negotiate the rate as well as the initial set up cost. My suggestion, is try several banks before deciding on one. Make sure you obtain interest rate and set up cost. Then, make your decision.
So what value is a mortgage broker, if banks is the better choice? The challenge behind banks is getting approved. A bank is only one lender and can be picky with who they are willing to lend money to.
If you can't get approved by the banks with the best rates, a mortgage broker may be able to help. They have a long list of lenders, both large and small that are more flexible with granting loans. Mortgage brokers should also know how to make you look good. All loans have exceptions to their rules. If the mortgage broker can prove and they should know the best tricks, that you will be able to make payments, then you will get approved. In worst case, a mortgage broker could use a higher interest rate lender to assist you with your mortgage.
Hope that helps!