As one of the biggest financial decisions many Canadians will make in their lifetime, buying a house and applying for a mortgage comes with a lot of choices, some of which can be overwhelming and confusing. Working with a qualified mortgage broker who is familiar with the housing market in your region, is one way (and the best way) of cutting through the jargon and making sense of the many choices you’re faced with, and they can get you the best deals, too:
How a mortgage broker is more helpful than going straight to your bank:
While you might be happy using a bank to hold your money, should you rely on them when it comes to getting a good mortgage deal? Probably not. Banks will offer you their deals, and their deals only, whereas a mortgage broker has access to countless lenders, with countless different rates to suit your financial situation and home ownership goals.
Brokers are also adept at explaining the application process in terms that you can understand, avoiding jargon and making sure you’re aware of any new regulations.
If you’re worried about the cost of using a broker; it’s important to note that they can often make you significant savings on your mortgage that a bank simply won’t be able to, savings that will quickly pay back what you spent on hiring a broker, and then some.
A broker’s great rates and terms will often beat your bank:
Mortgage brokers are in a much better position to find you the best rates for your specific financial circumstances, and not only do they have access to many different lenders, but they have access to their special rates, too.
Banks often have far tighter restrictions on their lending criteria, which can act as a barrier to applicants with financial barriers or insufficient credit history; this is where brokers come in. Understanding the various application criteria of the many lenders they work with, brokers can simply shop around for a lender whose criteria you will be able to meet, and because they only get a finder’s fee from the lender once an application is approved, you’re not in line to pay any fees upfront.
Brokers are dedicated to mortgages, and mortgages only:
Mortgage brokers make getting the best deals for their clients, their business – literally, and as such, are dedicated to finding deals that don’t just give low rates while ignoring the risks that might be associated with it, but that will satisfy all of your criteria, while conforming to the lenders restrictions in full. Their reputation is naturally important to them, and they know that one bad experience from a client, can result in a lack of clients from thereon in. So, they strive to get you exactly what you want, when you want it, in a transparent and professional manner.
So, instead of going straight to your bank because you believe it to be the easy, or cheapest option when it comes to applying for a mortgage, try working with a broker to see just how much money you could save in the long run.