Many years ago when we were buying our first house, someone suggested using a mortgage broker.. not wanting to appear dumb.. I responded back “we’ve got it covered”. Truthfully.. back then I had no idea what a mortgage broker was. I assumed it was another one of those “costs” that you were not told about until after the fact, and really.. did we need one? Below is an article from one of our local mortgage brokers that explains just what mortgage brokers can do for you. We did end up using a mortgage broker and pretty glad we did! Enjoy the article!
What Can a Mortgage Broker Do For Me?
With today’s uncertain economic climate, the record debt levels many Canadians now have, and the interest rates at their lowest point in history, we thought it would be a good time to remind you exactly what they do and why you would use their services.
Here is some information that may help you understand a little more of how mortgage brokers can help:
When you use a mortgage broker to find you the very best mortgage, and negotiate on your behalf, there is no cost to you. The lender pays the broker a fee for finding and bringing them the business. Remember, it saves them from the cost of additional employees in wages, vacations, training cost, office space and benefits. There is no cost to you, and they only earn a fee if they arrange the mortgage for you. The Fee is the same, regardless of which lender is chosen, and it is not built into the rate. The rate is typically lower than if you went directly to the lender, and the process is a thousand times simpler.
They may also have lenders available that specialize in providing mortgages for clients who are self employed, contract employees, have seasonal income, have trouble proving income, or lack some of the standard documentation. Mortgage brokers are experts in negotiating the best rates for all Canadians, but understand that sometimes you may have challenges in your past that they can work through with you, to get you back on track.
Many consumers think their bank will automatically give them the best rates because they have been loyal customers for many years, have multiple accounts with them, or have high account balances. Don’t fall into that trap. That kind of thinking has cost many clients thousands of dollars in unnecessary interest.
Often clients make the time consuming mistake of going to multiple lenders themselves, attempting to negotiate the best rate. Each time a Financial Institution pulls your credit report, your credit score actually drops. Sometimes the very exercise of trying to find the most competitive mortgage rate on your own actually disqualifies you from qualifying at all, or forces you into accepting higher interest rates.
If you, like so many other Canadians, have high interest credit card debt, department store debt, line of credit debt or other outstanding payments, now might be the ideal time to refinance your existing mortgage and consolidate it all into one simple payment, at the lowest rates of all time. This consolidation can sometimes reduce your monthly payments by more than a thousand dollars per month.
There has never been a better time in history to consolidate debt, refinance your mortgage or purchase investment properties. A mortgage broker will get the lenders competing for your mortgage business, so that you get incredibly competitive low rates, expert unbiased advice and fast, friendly service.
Contact a mortgage broker today for a complete mortgage review at your convenience, but remember, the lowest rates in history won’t last long.
Many thanks to April Dunn for providing this article for us.
April Dunn is a Mortgage Broker who has been assisting clients to purchase, refinance or renew their mortgages for over 15 years. April is the Managing Broker of Mortgage Alliance Homeline Mortgage, an independent franchise of the Mortgage Alliance network. April provides a full range of residential and commercial mortgage financing for clients all over the province of British Columbia. April can be reached at 250-826-3543 or firstname.lastname@example.org