If you are ready to purchase a home you will, of course, need a mortgage. Banks and mortgage brokers offer mortgages, but when facing a major financial commitment like a mortgage you may benefit from using an independent mortgage broker to help you make the biggest investment you will ever make.
Mortgage brokers, unlike banks, specialize in mortgages. Mortgage brokers have access to all lenders, not limited to the bank’s own rates and offers. Mortgage brokers can therefore find the best mortgage for your own specific financial needs.
What do mortgage brokers do?
An experienced mortgage broker will analyze your financial and credit situation, to help you figure out the best mortgage you are eligible for. The broker will then liaise with the lenders to tailor a mortgage to your unique financial situation, getting the best rates, terms, and conditions you are eligible for. The broker also helps with the often-confusing application paperwork.
In addition to being confusing, the loan process is often also stressful. A dedicated mortgage broker will alleviate some of this stress. A mortgage broker will advise you on your best options for your current particular situation. Mortgage brokers can also advise you how to get the best interest rates in the future.
Mortgage brokers get better rates and have more options
Mortgage brokers deal with the lenders all the time. They have in depth knowledge of the mortgage and banking industry, often knowledge of lending deals that are not widely published. Mortgage brokers’ extensive resources means that you have more chance of getting a mortgage with a mortgage broker, as opposed to a bank.
Mortgage brokers may be able to get you a mortgage even if your bank turns you down. Reasons for being turned down include having an income below the bank’s limits. But mortgage brokers have access to other lenders, and with different criteria. There are many options designed specifically for people with low credit scores.
Using a mortgage broker will also make the mortgage process quicker. Experienced mortgage brokers can speed applications through.
You will get the best rates, and have the most options, if you choose a large mortgage brokerage. Make sure your mortgage broker is a member of The Canadian Association of Accredited Mortgage Professionals (CAAMP) and part of the Independent Mortgage Brokers Association.
Sources used in researching this article include Canadian Mortgage Group: Why You should Choose a Mortgage Broker and W & Y Homes Co: Why Choose a Mortgage Broker and Not a Bank?