How My Brokerage Firm Is Saving Me $600 on My New Mortgage

Soon, I will be getting a new mortgage to purchase a new house. As anyone who has ever gotten a home loan knows, it's very expensive to pay the closing costs associated with the purchase. In fact, closing costs averaged $6,905 in the U.S. in 2022, including taxes.

The good news is, my closing costs are going to be a little cheaper than they otherwise would be. That's because my brokerage firm is helping me get a break on my mortgage origination fee. Here's why.

Loyalty has paid off with my brokerage firm

When I get the mortgage on my new home, I am going to save $600 thanks to my brokerage firm.

My broker is linked with a bank that offers a rewards program. Due to my loyalty to this financial institution and because I'll be getting my mortgage from the same place that I keep my retirement accounts and my taxable brokerage accounts, I'm able to qualify for this rewards program and all the special perks that go along with it. This includes $600 off of the mortgage origination fee, which will directly reduce my closing costs.

Of course, I still shopped around to compare different rates and mortgage offers from different lenders before I decided to go with the bank that is part of this loyalty program. After all, saving $600 is a great deal, but it wouldn't be worth it if I had to pay a much higher interest rate for my home loan.

Fortunately, the lender with this discount just happened to also offer me the most competitive rate and quickly pre-approved me for the amount I wanted to borrow -- perhaps because of my strong existing relationship with it. Plus, the lender can easily see how much money I have invested so it may have more confidence I won't default on my mortgage loan.

Consider all the benefits and perks your broker offers

Loyalty to one financial institution isn't necessarily the best decision in every situation. There are many factors to look at when selecting a brokerage firm, including what kinds of accounts the broker offers, what assets you can invest in, and what fees it charges.

But, it's worth looking at all the perks that different brokers offer when deciding where to keep your money -- especially if you will be borrowing for a home soon and could potentially qualify for discounts through participation in loyalty programs.

My brokerage firm and chosen mortgage lender are not the only financial institutions that offer special bonuses and perks for loyal customers, and it can be well worth looking into whether any of these options could save you money on big-ticket purchases. This could help make the difference in deciding which broker to use if you don't have a strong preference based on other features on offer.

For me, I'm very glad to save this $600 and I'm happy I'll be doing business with a company I already know and trust when I get my new mortgage loan.