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

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

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