5 Great Reasons Why You Should Use a Mortgage Broker
Updated: Mar 21, 2021
In a world full of choices, choices, and more choices, it can be difficult to determine the best resources you can rely on when making decisions for your future. Fortunately, in the world of complex financial systems, mortgage brokers can help (with all things related to mortgages anyway). With access and knowledge of over 200 mortgage products, including those available at the big banks, credit unions and trust companies, mortgage brokers and agents, like myself are well versed with the wide selection of mortgage products available to borrowers.
From first-time homebuyer assistance programs, to mortgages for the self-employed or those with credit issues, mortgage brokers can be a valued asset as you look for the best mortgage rates and products, regardless of what stage of life you happen to be in.
1. Mortgage Brokers Save You Time: One of the greatest benefits to working with a mortgage broker is that we are a one-stop-shop which not only saves your valuable time, but can also save you money (sometimes considerable amounts). Mortgage brokers are considered top professionals on everything related to mortgages and are able to connect with all lenders, including the five big Canadian banks, smaller credit unions and even private lenders, if required in your situation. This means that you merely need to fill out an application, provide the necessary documents and then let your broker go to work on your behalf. This helps you to focus exclusively on the best available options for your unique situation. Your broker will present some options and help you make the final decision on which mortgage product to go with.
2. Mortgage Brokers Can Save You Money: When it comes to lending, not all mortgages are created equal. Not only do the various banks offer different rates, fees, pre-payment terms and penalties depending on your situation, they only offer their own, very limited, selection of mortgage products. For a person to gather multiple, accurate quotes, they would have to have multiple meetings, at multiple lenders and visits countless online resources to get even a partial grasp of the mortgage rates and terms available to them. Using sophisticated software, mortgage brokers can access all the various lending resources and with their industry connections can often find you a lower mortgage rate and better overall mortgage terms for you and your family.
3. Mortgage Brokers Offer Unbiased Guidance: Most brokers can access 30 to 40 different lenders and for our mortgage professionals, client satisfaction and referral business is paramount to the success of our business. Unlike banks who are focused on stock price and bottom line profitability (ever notice how much the big banks make these days?), a mortgage broker is a third-party, unbiased resource who gets paid a commission regardless of which bank or lending institution you end up signing with. This means they will be sure to get you the absolute best rate AND best mortgage terms. They are 100% focused on client satisfaction, for the first transaction and for the life of your mortgage(s).
4. Mortgage Broker Services are Usually at No Cost: In the vast majority of cases, the
services of a mortgage broker come at zero cost to the borrower or home purchaser. A mortgage broker in-fact receives commission compensation from the lenders. The only time costs might be involved is when your situation is highly complex requiring the broker to work within the private lending market or with a lender who refuses to pay brokerage fees on mortgage consider to have higher than normal risk. In these situations, the mortgage broker is legally obligated to tell you in advance what fees will be charged. Also, for 99% of people in these more sticky situations, having a mortgage broker on your side is highly recommended and worth the cost.
5. Mortgage Brokers Protect Your Credit Score: In addition to the time it takes to apply at multiple lenders yourself, doing so will lead to a decrease in your credit score. Every time you apply with a different lender (or with multiple brokers), they will need to do a “full credit check” and unfortunately, if you have multiple credit checks over a short period of time your credit score may be negatively effected. The benefit of working with a single mortgage broker is they usually only need to pull a single credit score in order to apply to multiple lenders and get you the best deal.
If you are looking to buy a new home, renew your mortgage or are considering refinancing in the coming twelve months, I would love to provide my advice and expert guidance to ensure you get the best mortgage product available for your unique situation. Please do not hesitate to contact me for to book a phone, virtual or in-person appointment. Alternatively you can book an appointment online.
I'm looking forward to speaking with you
Mortgage Agent in Ontario, Canada.
Dominion Lending Centres.
416.432.8836 | www.dougpaterson.com