With interest rates near record lows, many first-time homeowners are wondering if they should take the proverbial leap onto the property ladder. But before visions of signing on the dotted line and painting your new living room run through your head, there are a number of things you need to consider.
A house is probably going to be the biggest purchase you ever make, and chances are you probably won’t be able to buy it upfront in cash. Like most Canadians, you’ll need to get a mortgage.
The experts at Canadalend.com know mortgage shopping can be daunting, even at the best of times. Are you getting the best interest rate, and are the terms and conditions best suited to your economic situation and lifestyle?
Shopping around, asking questions, comparing, and negotiating could end up saving you thousands of dollars. For example, if take out a 30-year, $250,000 mortgage with a five percent interest rate, you would end up spending $233,139 in interest alone! Get that same loan at 4.5% and you pay $206,016 in interest; saving over $27,000!
Big banks may be the first place that pops into your mind when considering a mortgage. However, you have to ask yourself: will the big banks help you secure competitive rates and terms? What if you have bad credit? Will they look out for your best interests, or their bottom line?
10 Benefits of Using a Mortgage Broker
Buying your first house and getting your first mortgage can be an overwhelming experience. Thanks to soaring housing prices in Toronto, many find the process of applying for a mortgage to be the most intimidating part.
While many turn to Canada’s big banks to help them secure a mortgage, refinance, or renew a mortgage, more and more people are turning to a mortgage broker. Why should you use a mortgage broker? Below is a list of some of the top reasons to choose a mortgage broker over a traditional bank or lender.
They Represent You
One of the top reasons to use a mortgage broker is that they are financial experts that work on your behalf and not on behalf of a particular bank.
A loan officer at a big bank works for just the one bank. And they get paid by the bank, either through commissions or salary, or a combination of both.
This means they will only recommend their own financial products to you, whether they suit your needs or not, just so they can sell something. Or, because they get a salary, they may not be looking out for your best interest.
Instead of being limited to one set of financial products from one lending institution, a mortgage broker works with hundreds of different lenders to make sure you get the best-priced, best-structured financial product possible. Moreover, they get paid a commission from the lender, not from you.
They Save You Time
What else does a mortgage broker do for you? A mortgage broker will help you save time and do all the legwork when it comes to paperwork and negotiating with a lender. On top of that, they can help you get preapproved for a mortgage. And, going forward, they can be your personal contact for everything related to your financing.
They Offer Lower Interest Rates
According to a Bank of Canada report, shopping around and negotiating skills are key to getting the best deals on a mortgage. The paper also noted that borrowers who use a mortgage broker pay lower rates .
Mortgage brokers have good relationships with a large number of different types of lenders and are able to negotiate lower rates.
They Let You Secure a Mortgage with Bad Credit
Because of stricter lending rules in Canada, it’s become difficult for those with bad credit, who are self-employed , have low or unstable income, have a short record of employment, or have declared bankruptcy to get a mortgage with a traditional lender.
Mortgage brokers can help those turned down by traditional lenders secure loans. That’s because they work with hundreds of different lenders and specialized institutions, many of which specialize in helping those with bruised credit get a mortgage.
They Help You Find the Best Mortgage Lenders
Mortgages are complicated; as a result, there is no one-size-fits-all approach. Everybody’s needs are different, and there is more to consider when getting a mortgage than just the interest rate. Do you want a variable or fixed mortgage? What is the amortization period and payment schedule?
Because mortgage brokers are independent , they are not limited to the products they can offer you. As your broker, they will find the best lender and mortgage product specifically designed for your needs, whether it comes from a Chartered Bank, Trust, Insurance Company, or private lender.
Banks do not have a network of lenders. Every home loan application the bank receives is from the same lending institution.
In Many Cases, There Is No Need to Pay a Mortgage Broker
Another benefit of using a mortgage broker is that, in most cases, you don’t need to pay for their services. Mortgage brokers receive a fee from the financial institution that arranged your mortgage.
Canadalend.com agents are licensed professionals. Each of our independent agents have taken courses, passed exams, and undergone extensive training. Not all brokerages are created equal; don’t be afraid to ask your agent about his or her qualifications and years of experience.
Unlike banks, brokerages work for you, not the lender. At Canadalend.com , our goal is to help you navigate the often confusing world of mortgages. Our agents draw from all available mortgage products that match your needs to provide you with impartial advice and make recommendations. Our agents can also refer you to other qualified professionals, from property appraisers to real estate lawyers.
Getting You Approved
At Canadalend.com, we know how anxious people get when applying for a mortgage. That’s why it’s our mission to get you approved in 24 hours. The experienced agents at Canadalend.com can help even those with bad credit receive approval.
Canadalend.com takes care of the details so you don’t have to. We work hard at ensuring your mortgage experience goes smoothly, all the way through to the closing. We work with all major banks and lending institutions and know how to present your application and improve your chance of approval. We aren’t done until you’re 100% satisfied!
Canadalend.com, Mortgage Brokers Working For You
Is it better to use a mortgage broker or bank? The choice is clear. If you are ready to purchase your dream home, refinance, or renew your mortgage , let the licensed, independent, agents at Canadalend.com help you find the best mortgage with the best options.
Canadalend.com is the nation’s leading low-cost, private mortgage solution provider . Because Canadalend.com agents are independent, they are able to draw from hundreds of banks and lenders to help you find the mortgage best suited to meet your needs.
We’ll sit down with you and evaluate your financial situation, help you determine what kind of mortgage you qualify for, and find the right lender.
The mortgage brokers at Canadalend.com can also get you pre-approved for a mortgage or loan in 24 hours or less. Getting pre-approved will show you how much of a mortgage you can qualify for. The pre-approval rate lasts for 120 days and is protected even if interest rates rise.
If you’re interested in seeing what kind of mortgage you qualify for, contact Canadalend.com today or apply online and a Canadalend.com mortgage specialist will set up an appointment at your earliest convenience.
1. “Discounting in Mortgage Markets,” Bank of Canada, last accessed November 9, 2016; http://www.bankofcanada.ca/wp-content/uploads/2011/02/wp11-3.pdf.