15 Aug

Reason #10 To Consult a Mortgage Broker: Money

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Posted by: Sarah Boudreau

Reason #10 To Use a Mortgage Broker: Money

Everyone always wants the best interest rate, that’s a given, and yes, often a mortgage broker can actually get you a better rate from your very own bank than you can. Mortgage brokers also have access to a very large pool of lenders that cannot be accessed by the general public. Many of these are smaller, otherwise known as Monoline Lenders, who often offer bulk discounts on mortgage products and offer rock bottom rates. interest rates are changing on a daily basis. We are always up to date with the rates and terms each lending institution is offering.

Aside from rate, there are many other factors to consider when choosing a mortgage. Payout penalties, for example, can be a huge cost if you terminate your mortgage before the term is up. It is important to understand how your mortgage lender calculates the penalty. A mortgage broker can save client ten’s of thousands of dollars over the term, just by placing the mortgage with a lender who has a more lenient penalty, or into a mortgage term that has a lesser penalty.

Utilizing pre-payment privileges can also be an integral part of the overall mortgage planning. A good mortgage broker will help you strategize this and have you mortgage paid off as quickly as possible.

The various insurer programs like the Purchase-Plus-Improvements and the CMHC Green program can save buyers a ton of money by creating the opportunity to capitalize improvements and renovations into the low-rate mortgage, rather than carrying the cost on a much higher rate credit card or line of credit.

Don’t leave money on the table- make sure you call a trusted mortgage advisor for a free mortgage consultation before you sign with your bank.

As Always, let me know if you have any questions or concerns.

Sarah

8 Aug

Reason #9 To Consult a Mortgage Broker: Ongoing Service Commitment

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Posted by: Sarah Boudreau

Reason #9 To Consult a Mortgage Broker: Ongoing Service Commitment

Once a broker places a mortgage for a client, you are a client for the life of that mortgage! Mortgage brokers encourage clients to call us at any time for advice on their existing mortgage, and we will keep the client up to date on any mortgage news and how it pertains to their situation. A client may be in a variable rate or adjustable mortgage product. Brokers can provide guidance as to whether locking in the rate is in the client’s best interest or if its more favorable to stay with their current product.

 

A mortgage broker will always encourage their clients to call for advice on future plans for any additional purchases as well. With the ever-changing mortgage guidelines, brokers can help navigate the process for any new properties and subsequent mortgage financing for vacation properties, rental properties or a second home for a child attending university.   Life is unpredictable and mortgage brokers are there for their clients to assist with all of life’s circumstances. A mortgage broker has experience in dealing with many different situations such as refinancing to renovate a home, a new marriage, a divorce situation that requires a spousal buyout or perhaps an out of province move.

 

Brokers like to keep in touch with their clients in order to pass along any pertinent mortgage news or changes that are taking place in the market. Brokers want their clients to be aware and knowledgeable about how any changes may affect them currently or in the future. An experienced broker is always transparent with their clients, providing the information and options available to help their clients make the best decision given their circumstances. Because of this, brokers will be in touch various times throughout the year as changes pop up in the market.

 

Knowledge is powerful, therefore brokers provide an ongoing service commitment to keep in touch with their client base and pass along as much knowledge as possible.

 

As always if you have any questions or concerns, let me know.

 

Sarah

 

2 Aug

Reason #8 To Consult a Mortgage Broker: Understanding the Fine Print

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Posted by: Sarah Boudreau

Reason #8: Understanding the Fine Print

Obtaining a mortgage is a very paperwork intensive process. You will be initialing, signing, and waiving things like never before. A good mortgage broker will never tell you to just “sign here”.  We will educate you and make sure you understand everything you are signing, as a knowledgeable third party.

Your documentation package for review will include the following:

  • Lender’s Commitment including all of the terms and conditions, which can vary from lender to lender.
  • Full cost of borrowing disclosure. How much does your mortgage actually cost you over the term of the loan. What is the APR on your loan?
  • Your property appraisal (if applicable).
  • The mortgage life and disability insurance options that might be available to you.

The final review and signing of documents for either a purchase or a refinance is done at your lawyer’s office. As your mortgage broker, we ensure that you arrive for your meeting at the lawyer’s office educated and well prepared to finalize the mortgage.

As always, if you have any questions or concerns let me know.

Sarah

26 Jul

Reason # 7 To Consult a Mortgage Broker: A-B-C Lending Solutions

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Posted by: Sarah Boudreau

Reason #7: A-B-C Lending Solutions.

We have relationships in place with a variety of lenders including major banks, trust companies, credit unions, monoline lenders,  alternative lenders and private lenders.

Not everyone has a perfect application for an ‘A’ type mortgage product. For example, self employed individuals with lower taxable earnings or those with a bruised credit history may not fit under ‘A’ criteria. There are still several lending options available for those who may not be able to secure mortgage financing with a traditional ‘A’ lender.

A great mortgage broker has strong relationships with various alternative lenders to assist in these situations. Slightly higher interest rates and fees are associated with these type of applications. Alternative lending is best positioned as a short term solution until the clients get their credit back in line or has established the required income needed to qualify with an ‘A’ lender.

Due to the new mortgage underwriting guidelines, private lending has also become more prevalent. Private lending is more expensive than alternative lending in the short term, but can be a good option for those that don’t fit A or B qualifying criteria. Real estate investors and ‘flippers’ can benefit from these private lending solutions.

To summarize, it is valuable to have an experienced mortgage broker working on behalf of the client as brokers have a broad range of lenders to work with and can offer clients the best combination of service, price and product features available depending on the clients situation and their future goals.

As always, let me know if you have any questions or concerns.

Sarah

18 Jul

Reason #6 To Consult a Mortgage Broker: Options, Options, Options

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Posted by: Sarah Boudreau

Reason #6:  Options, Options, Options.

A good mortgage broker has access to a variety of lenders and products to suit your needs. Everyone wants the best rate, but a good mortgage broker will help you choose your lender and mortgage product based on other factors as well as rates.

A few of the other factors to consider, for example:

Term: Fixed or variable rates and open/closed terms: There are advantages and disadvantages to be discussed and considered.

Portability: Do you plan on moving to a new home within the term of the mortgage?

Pre-Payment Privileges: Flexibility to make additional lump sum payments against the principle and/or increase your monthly payment amount throughout the term.

Payout Penalties and IRD Calculations: Understanding how your penalty will be calculated if you break the mortgage before the end of the term.

Interest Compounding: Semi-Annual versus Monthly.

Structuring Multiple Components: Would you like to attach a home equity credit line to your mortgage? Perhaps you may wish to diversify your home investment by setting up your mortgage as part variable and part fixed rate.

Front or Back End Insurability: This has become a very complicated factor with the most recent wave of government rule changes. Insurability can impact many things, including your rate and the option to transfer your mortgage down the road.

Special Insurer Programs: In the event of a purchase, there are various Insurer programs that may be available to you. The flex-down to help with down payment, or a purchase-plus-improvements product to help with renovations might be right for you. The CMHC Green program is becoming more and more popular for those making environmentally friendly upgrades.

It is important to know all of the options before you decide on a mortgage product. A trusted mortgage broker will guide you through this, and provide you with a variety of solutions to suit your short and long term goals.

As always, let me know if you have any questions or concerns.

Sarah

12 Jul

Reason #5 To Consult a Mortgage Broker: Negotiation

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Posted by: Sarah Boudreau

Reason #4. Negotiation

A Mortgage Professional represents the client and ensures the mortgage secured best suits their needs.

A good mortgage broker is a savvy negotiator. Mortgage brokers are independent, trained professionals licensed to represent and provide the best advise for the clients’ mortgage needs. Mortgage brokers know where the best rates can be found, and we represent the client to negotiate best terms, conditions and rates. Often times, a broker can even find better rates at the client’s existing bank. Not only does this save the client money, but invaluable time.

Mortgage brokers represent the customer. Because we are not employees of a lending institution, brokers are not limited to one specific product. Instead, we seek out the best lender package to suite the client’s specific situation, whether it’s with a Chartered Bank, Trust or Insurance Company or Private Funds. There is a wide assortment of options and features available to home-buyers today and shopping around takes a lot of time and effort. Given the new government rules that were implemented on January 1, 2018, the mortgage process can be intimidating. It pays to work with a mortgage professional who will represent the client and negotiate on their behalf to ensure the mortgage is the best option for them. Choosing the wrong mortgage option can cost thousands of extra dollars. Mortgage brokers are trained professionals who can help save the client’s money.

As always, let me know if you have any questions or concerns.

 

Sarah

5 Jul

Reason #4 To Consult a Mortgage Broker

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Posted by: Sarah Boudreau

Reason #4. Expertise.

Getting your financing approved to its fullest potential.

Many people leave their bank branch meeting feeling disappointed that they have been declined, or that they are not approved for the financing amount they would like, or that they believe they can reasonably afford. As of lately, the recent waves of government mortgage rule changes have put more and more consumers in this position. Most applications are not “cookie-cutter” anymore. Are you familiar with your bank’s mortgage lending guidelines? For example:

Debt Servicing Ratios: Each lender has different maximum values they consider for both your GDS (gross debt servicing ratio) and TDS (total debt servicing ratio) to their comfort, within government guidelines. This means each lender can have an individual amount they will allow you spend on your new mortgage and associated costs, and an individual maximum on other debts like credit cards and car payments etc.

• Default Insurers: For those with less than 20% down, you require default insurance and are subject to their approval of your application. In Canada we have 3 insurers. Not every lender uses all 3 of the insurers.

• Qualification Criteria: Knowing how a lender will qualify your income sources or liabilities (self-employed, pensions, child/spousal support paid or received, vehicle payments, etc.) is crucial. The way these are calculated varies from lender to lender and can drastically impact your debt servicing ratios, and therefore your buying power.

• Supporting Documentation: Paperwork can be a pain. A good mortgage broker will work with you and the paperwork you are able to provide and represent you best. Each lender has different documentation requirements, this is very important to consider, especially with the various programs for those that are self-employed.

• Legal Closing Criteria: Your lawyer will advise you of all pertinent issues prior to closing, but a good mortgage broker will have insight in advance on the lender specific requirements, such as property tax payments, condo documents and file specific affidavits that may be required.

A good mortgage broker considers all of the above and more before submitting your application. You don’t need to worry about it. We work for you to get you the best options available, with as little stress as possible.

As always, if you have any questions or concerns, let me know.

Sarah

 

28 Jun

Reason #3 To Consult A Mortgage Broker

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Posted by: Sarah Boudreau

Reason #3. Availability.

We don’t keep “banker’s hours”. We are always only a phone call or an email away for our clients and business partners. You won’t be left in the dark during your financing process, we always keep you updated. Whether you are getting pre-approved for your first purchase, under a timeline to get financing in place for your dream home, or refinancing a property in a vast rental portfolio, we are there to manage the application and keep you abreast to any issues or developments, at all times.

We value our clients, business relationships and referral partnerships. Jennifer Bergstrom founded Jencor Mortgage in 1987. Jen instilled the philosopy in our company that clients, realtors and builders always need to be kept up to date on the status of the file at all times. Since it’s inception, Jencor has always worked very closely with realtors and builders to create an extended team of reliable professionals for our mutual clients.

Nobody wants to feel left out of the loop or uninformed during the financing process. It is stressful to have to wait for a call back and having no one to talk to, especially if you are under a timeline for financing approval. No one wants to find out at the very last minute that the mortgage is not actually approved, or that you are going to need to a contract extension. If this is happening to you, you need to consult a trusted mortgage advisor.

As always, let me know if you have any questions or concerns.

Sarah

 

21 Jun

Reason #2 To Consult a Mortgage Broker

General

Posted by: Sarah Boudreau

Reason #2. Trust.

We work for you. A trusted mortgage advisor serves to represent you in your negotiations with the mortgage lender, or multiple mortgage lenders. An employee at a lending institution is always going to be working in the best interest of that institution, which is not necessarily your best interest. Sometimes cross-selling incentives can cloud the process if you are obtaining a mortgage from a representative that may also specialize in other products, like investments loans or credit lines. Sometimes these representatives are not actually licensed to specifically deal in mortgages. Licensed mortgage advisors are also paid by the lending institution, but in a different way. In almost all cases, we are paid a commission by the lender that we match you with, only after your mortgage is funded. This means that we only get paid when you are fully satisfied with our product offering, all conditions are met, and the deal is done. We will never abandon you during the financing process, and we will always be by your side for any hurdles along the way. We will walk you through every part of the transaction, beginning to end.

A good mortgage broker is educated and experienced in all things mortgages. We are licensed, regulated, and held to a high level of ethical conduct and character. Our reputation is paramount, and our honesty and integrity are our business. We will always be transparent and open with you.

We are your trusted advisor for the life of the mortgage. If at any time after funding you have questions or changes in circumstances, you can rely on us to be there to present options. Life can get complicated. In the event of a potential relocation, financial hardship, or marital breakdown, it is important that you have an experienced mortgage advisor there to offer honest advice about the various options that might be available to you.

As always, let me know if you have any questions or concerns.

Sarah

13 Jun

Reason #1 To Consult a Mortgage Broker

General

Posted by: Sarah Boudreau

Reason #1. Unbiased Advice

Mortgage Brokers are industry professionals that provide free, independent financial advice. It doesn’t cost you a cent to call us for professional advice or a second opinion. In most cases, purchasing a home is the largest investment you will make, and it is critical that you understand the details of the financial options available to you before you sign away. Mortgage Brokers are licensed to specifically deal in mortgages, and we are regulated by provincial and national government bodies. Your mortgage is our specialty. We don’t need to sell you a chequing account, or a car loan, and we won’t be transferred to a new department in 6 months. We do mortgage planning, and we do it at no cost at all to you, in most cases, as we are paid by the lender that we match you with.

Shawn Stillman said it well in a Home In Focus magazine interview:

“In no other industry can investors get financial advice for which they don’t have to pay. In the mortgage industry, the lender pays for it. It doesn’t cost the investors anything to get a second opinion. Brokers get paid by the lender, so it doesn’t cost the client anything to use a broker’s services. From start to finish, investors get impartial advice with multiple options and it’s free, so why would you not go ahead and do that? 

If you look at most of the mistakes that investors make, they occur because the investor didn’t have enough information. Especially when you’re investing, it’s critical to know everything before making the final call; that means looking at the little details that help point investors in the right direction.”  Home In Focus: Canadian Mortgage Environment, March 30th 2017.

As always, let me know if you have any questions or concerns.

Sarah