What does a Mortgage Broker do?
Mortgage Brokers are independent, trained professionals licensed to represent and provide you with the best mortgage for your particular situation. What’s more, because Mortgage Brokers are experts in residential mortgages, we have the knowledge and expertise required to present a proposal for financing to lenders in the best way possible to increase the likelihood of approval. Because I’m independent, I am not tied to or employed by any of the lenders I have relationships with. I start the process by gathering your financial information to determine what products/rates you qualify for and we’ll decide together, what mortgage, and lending institution, is right for you.
Save time with one-stop shopping:
Lenders have different internal policies and rules, so, if one won't proceed on your file, for whatever reason, I will always look for an alternate solution and will approach several other lenders on your behalf. I have access to a large network of Canadian mortgage lenders including chartered banks as well as other lending institutions.
Mortgage Brokers have great rates:
Mortgage Brokers get mortgage rates at wholesale, guaranteed up to 120 days. No haggling, no negotiating and no wondering if you've been offered the best deal.
Other than rates, why should I use a Mortgage Broker?
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favourable rates for each project, but often whether a project is funded at all.
How do Mortgage Brokers Find Superior Rates?
Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from Mortgage Brokers. These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of an institution's portfolio in a particular type of mortgage. Your Mortgage Broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best available at the time of placement.
Why should I go to a Mortgage Broker first?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly. Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your Mortgage Broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result. You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your Mortgage Broker first!
How do Mortgage Brokers get better deals than many Banks?
The lenders who work with Mortgage Brokers include traditional sources, such as chartered banks, trust companies, as well as corporate and private pension funds. In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources.
Limited credit checks:
Mortgage Brokers generally only need to do one credit check. We pull your credit report and submit it to the chosen financial institution. If you were to go to several different banks to apply, each one would perform a credit check, which would lower your credit rating. Besides, you’d probably rather be out house hunting than organizing appointments at banks!
How does a Mortgage Broker get paid?
Mortgage Brokers are paid by the mortgage lender, not you. So, it doesn’t cost you a penny for our service, time and expertise! Like many other professional services (such as insurance brokers), Mortgage Brokers are generally paid a fee when we introduce trustworthy, dependable customers to a financial institution. These fees are standardized so the focus remains on you. There are very rare circumstances where a Mortgage Broker is not compensated by the lending institution for their work, such as arranging a private mortgage. This is extremely rare and if it applied to you, you would be notified in advance that there would be a fee associated with arranging your mortgage. Again, this is extremely rare.
Ongoing support and consultation:
Be assured that even once your file has closed and you’re in your new home I will be available to you down the road should you have any additional questions or should your future needs change.
As you can see, working with a Mortgage Broker will save you frustration, time and more often than not, money. Contact me today to get started on your application!