Mortgage Brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs!
The best way to explain this is as follows: when I worked for the bank(s) I was paid a salary every two weeks so that I would look after the best interests of the bank, and to promote that particular bank’s products whether they offered the best interest rate or the most suitable terms and conditions on the market for that client or not. A mortgage broker places the best interests of the client above all else when seeking to place a mortgage - and has more than 30 institutional lenders to choose from, all offering discounted rates.
Furthermore, in the majority of cases, the broker’s services are paid for by a finder’s fee from the lender and are therefore provided at no cost to the borrower. Most brokers also have a number of private investors available for the more difficult transaction, where the borrower may be required to pay a fee.
Mortgage Brokers work hard for YOU and NOT the banks!
Brokers are not limited in the product they can offer you. Brokers seek out the best lender package to suit your 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 homebuyers today. Shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.
Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage Brokers are trained professionals who can help you save on your mortgage dollar.
A mortgage broker can help you to:
- finance a house purchase;
- refinance your existing mortgage (usually in order to take out equity to pay down or consolidate debt, finance home improvements, purchase unrelated assets such as a car, education expenses etc.,);
- shop the market at renewal to find a lower interest rate than that offered by the current lender;
- find a private lender if your credit rating does not support an institutional mortgage;
- undertake various tax strategies such as the “Smith Manoeuver” (to convert your mortgage interest payment to tax deductible status) or simply to make or top-up an RSP contribution, thereby creating an income-tax rebate which may subsequently be used to reduce the mortgage balance again.
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 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.