Why use a Mortgage Broker
When you’re looking for a mortgage, you can spend time doing your own shopping around and researching lenders, talking to mortgage officers at different banks and credit unions, and comparing rates. Or you can have a mortgage broker do it all for you – for free. And convenience isn’t the only reason to use a broker; they can also provide you with more choices (and better rates) than you would be able to find on your own.
Why is that? Two reasons:
- If you go to a bank, they will only offer you their own products. Brokers have access to ALL the banks, credit unions and financial companies that offer mortgages. And more choice means a better chance of getting a lower rate.
- Brokers also have access to a wide variety of financial institutions – like Canadiana Financial – that don’t deal directly with consumers. They only offer mortgages through their trusted network of brokers. So if you’re looking for options without the help of a mortgage professional, you aren’t just wasting time, you’re missing out on some of the best products and rates on the market.
What to look for in a mortgage broker
An accredited broker is specially trained to go through all the offerings and find the best product, rate and terms for you. Need a hand finding a professional who will be the right fit with your needs? Here are a few key questions to ask before deciding to work with someone.
- How long have you been in the business?
- What kind of education and licensing do you have?
- Are you affiliated with any mortgage associations?
- How do you decide which loan is best suited to my personal situation?
- Is the rate you’re quoting me the lowest rate for that term on that lender’s broker rate sheet? (If not, why not?)
- Do you charge a brokerage fee for getting my financing approved?
- How much volume did your team do last year?
- Do you offer a range of different lenders?
- Do you do a large chunk of your business with one lender? If so, why?
- How many lenders does your team have “top-tier status” with?
- How much will you make on this loan?
There are also some questions to ask about the mortgage being offered that can help you see how knowledgeable the broker is – and how solid a fit he or she is with your needs and personality.
- How do I know this is the best rate?
- What impact will my credit card limits have on my borrowing capacity?
- What fees will I incur when taking out a home loan?
- What features are included in my new loan?
- What information do I need to provide you to obtain my financing?
- Can I choose to fix my interest rate in at a later stage?
- If I choose to take out a fixed interest rate, can I choose to lock my fixed interest rate in prior to settlement?
- How long will it take for you to obtain the appropriate financing for my needs?
- If I have a default on my credit report, will that impact my ability to get a loan?
- Could you estimate the closing costs for my loan?
- Do I need private mortgage insurance (PMI?)
- Are there any prepayment penalties on this loan?