Recently, Canadians have been trusting mortgage brokers to secure their first and next mortgage, taking advantage of the value and convenience of their services. A 2011 study conducted by CMHC (Canada Mortgage & Housing Corp) found that 48 per cent of first-time buyers completed their transaction with a mortgage broker, up from 45 per cent in 2009 and 35 per cent in 2007. Let’s talk about why Canadians are relying on the
professionals to help find the best mortgage solutions for their unique financial situations.
The Mortgage Broker Advantage
One of the most compelling reasons to work with a mortgage broker is that they have access to over 50 lending sources, making it significantly easier to match borrowers with the mortgage solution that best suits them. When you’re dealing directly with one financial institution, you just don’t know if you’re getting the best deal because they’ve only have their own menu of products to offer you.
A great Canadian mortgage broker is also knowledgeable about discounts that lead to lower rates and greater product choice. And, brokers are paid by the lender rather than you, the borrower, making it a logical choice to always consult with a mortgage broker – they’re shopping the market for the best rates, doing all the work and there’s no cost to you!
It’s not just about finding a lender
A mortgage broker’s role extends beyond securing the best mortgage rates – they can also arrange the home appraisal and lawyer or notary, review the purchase contract and statement of adjustments, secure mortgage life insurance and keep tabs on the entire closing process. And that’s just during the mortgage transaction. The broker then stays in touch, keeping clients aware of new mortgage offers and rate fluctuations and advising them on when to lock into a fixed rate mortgage. They can also inform you when rates have changed and the savings of moving to a new mortgage is greater then your penalty.
Ultimately, the role of your mortgage broker is that of a trusted advisor and it’s a relationship that can last a lifetime. Many mortgage brokerage clients have been referred by word of mouth, and many are even second- and third-generation client families.
Whether you’re taking on your first mortgage or a long-time homeowner looking to refinance, consolidate debt or leverage your equity to acquire a new property, a mortgage broker is a wealth of information that can save you time and money. They can advise about down payment requirements, mitigating credit history issues, mortgage payment and prepayment options, interest-saving strategies, purchasing vacation properties, investment and commercial properties, qualifying with supplemental rental income and mortgage options for new immigrants.
When you get a mortgage, likely the biggest financial commitment you’ll make in your lifetime, it’s critical that the person you’re dealing with is knowledgeable, able to answer your questions, and has access to a full range of lenders so you get the best mortgage for your needs. And when you find that right mortgage broker to help you secure the best mortgage solution for you, you will understand why so many Canadians trust the experts.
