06 Jun Why Use A Mortgage Broker?
Buying a home can be one of the most exciting events in your life. It can also be one of the most stressful, as your home is likely the single largest purchase you’ll ever make.
To finance your big purchase, you have a few options, including a big bank, a credit union or a broker.
Today, let’s take a look at our top ten list of why you should use a mortgage broker to buy your next home. I’m sure David Letterman would be pleased.
- A mortgage broker makes it simple. You don’t need to fill out lengthy application forms or do hours of research. Mortgage brokers do all of the legwork, making the process quick and easy.
- They specialize in mortgages. Sounds obvious, but mortgages are their area of expertise. Brokers have in-depth knowledge of the various mortgage products. They also know every rule and regulation. Brokers don’t diversify into other services like banks do – but that’s a good thing.
- Services are free to the homeowners. As a client, you don’t pay when you visit a mortgage broker. The broker only gets his fee, directly from the lender, once your loan is finalized.
- Brokers have access to the best interest rates. Since a mortgage broker has access to so many lenders, they can get you the best possible rate. Many brokers also benefit from volume discounts, which homeowners can’t get on their own. They then pass the savings onto you.
- Brokers allow for one-stop shopping. Choosing to work with a mortgage broker gives you access to dozens of lenders all at once. Credit unions, banks, private lenders, a mortgage broker works with them all. You don’t have to drive all over town to find the best mortgage for you.
- Get advice on how much you can afford to borrow. Not sure how much you should spend on a house? Your mortgage broker can run scenarios for you. They can let you know what your monthly payments will be and how much house you can afford.
- Mortgage brokers do the negotiating for you. Getting a great interest rate doesn’t have to be stressful. Leave the negotiations to an expert. Your broker can make a great deal on your behalf, freeing up your time to focus on other matters.
- Your mortgage broker is a great resource. Brokers have a good understanding of lenders and their products. That means they can advise you on which loan is best for your specific situation. For homeowners with less-than-perfect credit, for example, a mortgage broker knows which lenders will work with you.
- They are licensed and regulated. To work in Ontario, brokers must be licensed by the Financial Services Commission of Ontario (FSCO). They must meet strict guidelines in regards to training, education and experience. Before choosing a mortgage broker, you should confirm that he or she is licensed.
- Brokers are independent and impartial. Brokers don’t work for just one lender like bank mortgage advisors. Brokers work for you. By choosing an independent professional, you can get impartial advice on the best products for you and your family.