Navigating the Mortgage business can be tricky
January 16, 2016 | Posted by: Margaret Geall
Navigating the mortgage market can be tricky business, especially for first-time homebuyers, and even for seasoned borrowers and longtime homeowners. That's why when friends and family ask me for advice on taking out a mortgage, the best advice I can offer is to work with an independent mortgage broker. Here are 5 reasons I recommend using the services of a professional mortgage broker:
- Mortgage brokers work for you. When you hire a mortgage broker, they are obliged to act in your best interest and provide impartial advice. They will utilize their expert knowledge and network to source you the best mortgage product in the market suited to your needs, at the most competitive rate. With a more competitive rate, you might be able to raise your price ceiling and get the property you really want, renovate or spend more on upgrades.
- Mortgage brokers are already experts. You could theoretically research the mortgage market in your spare time for months, even years, and still never be as informed as a mortgage broker. They live and breathe mortgages every day and with the business always in flux, only a mortgage expert will be on the pulse of changing regulations, Bank of Canada updates and industry trends. With something as significant as funding a home purchase, you really are better off leaving it to an expert.
- Mortgage brokers are there to help. A mortgage professional offers you that personal connection you simply can't find by searching online. Your broker is there with you every step of the way to explain the ins and outs of your contract. Additionally, this personal service means a mortgage broker can assess your finances and establish how much you can truly afford to invest. This guidance is invaluable in exploring the options that make sense for you.
- Mortgage brokers do what you can't do alone. For some people, qualifying for a mortgage can be difficult. If you have a problematic credit score, are self-employed, new to Canada, or trying to get a second mortgage, a broker can help work around your situation. They have access to a specialized network of private and institutional lenders that can help you negotiate a mortgage you otherwise may not have access to.
- Mortgage brokers provide ongoing support. The service your mortgage broker provides doesn't stop after the contracts have been signed. A broker can review your mortgage a few times a year to make sure it's still right for you. It's always possible that, as the market shifts and interest rates change, you may (for example) wish to go from a variable rate mortgage to a fixed. But before you make a change, wouldn't it be great to get some independent, professional advice?
Best of all, a mortgage broker doesn't cost you anything under most borrower scenarios. That's because their broker fees are paid through the financial institution that issues the mortgage, meaning there is no direct cost to the borrower.
Call me: (780) 905-7996