(Photo credit: Casey Serin)While a lot of Canadians still go to their bank to get a mortgage that trend is getting smaller as more and more people recognize the benefits of using a Mortgage Broker. There is nothing wrong with the products offered by the big five but they are somewhat limited in their scope of suitability. After the credit crunch in 2008 most lenders have tightened their lending criteria and the banks tend to cater to only the most conservative applications. This being said, a Mortgage Professional can place your mortgage with a major bank if you wish. Of course the main advantages of working with a licensed Mortgage Broker are: you do not have to negotiate for the best rates and terms; products and companies that you would not otherwise have access to; and a standard of education and service that banks can’t match. If you shop around for your own mortgage you will need to educate yourself first so you can effectively negotiate rates and know what options are out there that might suit you best. Your credit will also be checked by each institution that you go to, lowering your beacon score and potentially making you ineligible for the very mortgage you’re applying for. Also, the big institutions base their business on volume and therefore have little time to spend with you beyond getting the proper documentation signed.
Going into a bank is akin to walking into a car dealership – you want to pay less and they want you to pay more – and it’s buyer beware. Most people buy their home with a realtor because it’s free and they’re more knowledgeable about the process of purchasing a home. Why wouldn’t you do the same with your mortgage and have a highly trained, licensed and insured Professional working with your interests in mind?
By using a Mortgage Broker you have an industry expert working for you to get the most suitable product and best rate with no hassles on your part. Your credit bureau will be checked only once and forwarded to as many lenders as necessary. They have the ability to approve applicants with credit problems, no down payment, acreages, commercial lending needs, mobile homes, new to Canada, or just about anything else that doesn’t pigeon hole into the banks lending criteria. Most importantly you have someone that can take the time to help you understand all the choices available to you, create a mortgage strategy to save you money and help you pay off your home faster, and to make sure you feel comfortable with your decision. That may mean a detailed explanation of the industry and how it works or maybe you just want someone to take care of it for you so you don’t have to think about it.
Other benefits of individual brokers is the experience and knowledge that they bring to the table as far as creative financing for more challenging circumstances, mortgage strategies to make your mortgage tax deductible and pay it off in as little as six years, and the contacts that they have such as realtors, home inspectors, appraisers, lawyers, credit counsellors, investors, accountants, financial planners, insurance brokers, and private lenders that fill the gaps left by mortgage companies.
For more information you can explore my website at www.trevormacmillan.ca or call me at (780) 996-2655. I am always happy to answer questions.
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