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Mortgages are products, and they have different terms and conditions. Don’t be fooled into thinking that all mortgages are simple boilerplate documents that differ only by the interest rate offered. Break the mortgage into two components: the interest rate based on the length of the term, and the terms and conditions.

Your mortgage document is normally several pages in length and outlines the numerous terms and conditions. Different lenders can offer different terms and conditions and the interest rate may be negotiable. The key is finding the best mortgage for your needs, your long- and short-term goals, and a competitive interest rate.

Traditionally, borrowers obtain a mortgage pre-approval either directly from a bank or through a mobile mortgage representative or mortgage broker. If you choose to work with a specific bank, you may have the option of working with a mortgage representative located within a branch; some banks have “mobile” mortgage representatives that will meet with you outside the branch at a time and location convenient to your needs. Some mobile mortgage representatives also have offices located in real estate brokerages.

Bank mobile mortgage representatives are usually not salaried and, therefore, do not earn money unless they offer and you accept a mortgage from them. It is in their best interest to find and offer you a great deal. Being open to bundling other bank financial services and products may assist you in getting a better mortgage offer.

When dealing directly with a bank, don’t forget that you are also dealing directly with the company that is lending the money (as opposed to dealing with a mortgage broker). How you present yourself to a bank can make a difference as to whether you obtain a mortgage and how good of a deal you are offered. Banks are interested in serving your financial needs — a mortgage is one product amongst several other financial products that they offer. You may be able to get a better mortgage deal if you are willing to use other financial products they offer such as bank accounts, credit cards, vehicle loan, insurance, RRSPs, and other investments.

In-branch bank staff normally work on a salaried basis, and often the mortgage representative can and will offer you a menu of other bank-related products and services. If you have an established relationship with a bank, especially if the branch staff know you personally, you might consider speaking with the mortgage representative to determine what he or she will offer. The mortgage representative will still need to go through an application process and will need to adhere to bank underwriting and risk assessment policies; however, having a personal banking relationship may help.

It is important to understand that if you go from bank to bank in an attempt to “shop” around for a mortgage, each prospective bank may do its own credit check, and this will affect your credit score as multiple hits or inquiries are recorded.

Mortgage professionals are also trained to work with the self-employed and new immigrants. This is a more specialized process. Some lenders offer specific mortgages and programs created specifically for self-employed people and new immigrants.

The mortgage market is competitive and mortgages are usually negotiable. Remember it is not only the interest rate that you may want to negotiate — terms such as prepayment privileges (on closed mortgages), portability options, early renewal, penalties, and a host of other options should be discussed.

Occasionally, lenders offer promotions for their mortgage products such as cash back, rate discounts, and prepayment options. It is important to assess the value and importance that their offerings have to your needs, or if you would prefer more of a no-frills mortgage. Be sure to read the fine print because occasionally special terms and offers carry specific rules that must be followed. Understand what the product is; don’t simply choose a mortgage product based on the interest rate alone. Again, consult a lawyer prior to signing any contract or agreement.

It is a good idea to ask the mortgage broker or bank mortgage representative for an outline of all mortgage costs as well as an estimate of your mortgage payment (i.e., principal, interest, and taxes). Some will even help you prepare a housing budget.