Why you should use a mortgage broker for your next mortgage:
Mortgage agents and brokers are impartial certified professionals, licensed by the Ontario Government to represent, and provide you with the best information and advice for your mortgage requirements. A mortgage broker’s main service is obtaining funding for mortgage type loans, and are familiar with where the best rates can be obtained. They also have the knowledge necessary to deliver a proposal for financing to lenders in the best way possible. This generally ends up being more successful in obtaining an approval for financing.
Mortgage Brokers only represent you the borrower, not the lender. They are not sales agents of the lending institution unlike a mortgage representative at a bank would be. Brokers are also not limited in the mortgage products they can offer you, and seek out the best financial product to meet your particular circumstance. A Broker has access to many lenders such as Chartered Banks, Trust and Insurance companies, and of course private funds. There are a wide assortment of options and features available to buyers today, and researching the various options can take a great deal of valuable time and can be frustrating. Using a mortgage agent can make this process much less complicated.
Top Reasons to use a Mortgage Broker
• Access to a variety of financial institutions.
• Credit and loans pre-approvals.
• Get mortgage rates at wholesale.
• They work for you, not the banks.
• Get you the best available mortgage rates, terms and re-payment options available on the market.
• They increase competition in the market place that keep rates more competitive.
• They save you time and money!
• Brokers have vested interest in fulfilling your requirements.
Other than better rates, why should I work with a Mortgage Broker?
In addition to rates, due to the fact that mortgage-based financing is the broker’s main business, they have acquired understanding in what kind of mortgage financing each lender prefers to engage in, and this kind of know-how not only results in the most favorable rates for each loan and often helps get the loan approved much more quickly.
How do Mortgage Brokers Obtain Better Rates?
Interest rates are a huge concern to all borrowers. A slight difference in rates can cost or save thousands of dollars over the term of the mortgage. Brokers know which lenders prefer which kind of deals and therefore give a better rate. They also have access to lenders who only work with mortgage brokers and have no retail outlets. These rates and preferences for choices of mortgages can adjust frequently, depending on economic circumstances or based on the size of an institution’s portfolio. Your Mortgage Broker keeps current and knows which lender to approach first, and rates obtained by Brokers are amongst the best made available at the time of placing.
Why should I go to a Mortgage Broker first?
A professional application presented to a lender on the original application will get the preferred outcome. Subsequent applications with previous credit bureau inquiries may be more likely to be declined. A lender will know if you credit has been checked before and wonder why. Multiple credit checks is also often a sign of fraud and many lenders will just decline the loan because it is a safe and easy option. The effectiveness of acquiring mortgage approval often relies on the way the application is presented and to whom it is sent. Your Mortgage Broker is experienced in submitting your mortgage where it will get the most favorable outcome.
How do Brokers get better deals than many Banks?
Besides having access to lenders who do not deal with the public directly, lenders are essentially bidding on your mortgage and know that a better than posted rate is needed to secure the deal. While it often feels like mortgage lenders are doing you a favor, they need your business and every month they have capital that needs to be placed.
Don’t only people with bad credit need a Mortgage Broker?
Years ago Mortgage Brokers generally worked with clients who had bad credit. The banks have always been picky about who they loaned money to, and Brokers had access to more lenders. Nowadays, Mortgage Brokers represent all borrowers whether their credit is good or bad simply because a broker can generally get a better mortgage rate for a client than they can get on their own. A Mortgage Broker helps create competition for your business that can save you thousands of dollars.