Over 30% of Canadians now source their home loans through a mortgage broker. Why? Because it can save time and possibly money.
A mortgage broker act as an intermediary between lenders and customers who are looking to finance their home. One visit to a reputable mortgage broker will make the process much easier and could save you thousands of dollars. They look after you through the entire home loan process by providing information and documentation advice, sourcing suitable home loan choices, and submitting applications.
Brokers have access to information for all types of bank loans. They don’t work for the bank and can give you the most cost-saving deal that they can find in the market. Brokers are expected to be transparent and take care of your best interests.
Here are a few advantages of using a professional mortgage broker:
Access to a wider range of products
A mortgage broker has relationships with several financial institutions that are competing to get your mortgage business. These institutions continuously compete with rate, product, and service promotions, hoping to win your business. Working with a mortgage broker will provide you with access to some of the best deals and most innovative mortgage products you can obtain on the mortgage market.
Help you get the best deal possible
Mortgage brokers shop the market for the best mortgage rate for you. They usually have access to so-called "wholesale" mortgage rates, which are significantly lower than the posted rates offered by the banks. In most cases, your mortgage broker has the ability to find the best rate on the market and still place your mortgage with the lender or bank of your choice.
The many forms and other data that are required for a loan application can be quite complicated. A seasoned mortgage professional will have years of experience that will help him or her navigate the tricky loan application and avoid complications for you.
Save you time
The most valuable of all commodities, a broker can save you time and has the experience to make sure you get the best package for your individual needs.
Mortgage broker services are free
Mortgage brokers are usually paid for by the lending institution where the mortgage is placed through a so-called "finder's fee". In other words, mortgage broker services are free to you. There are cases, however, where institutions do not pay a finder's fee to the broker, in which case the broker will charge the client directly.