Need a Mortgage? Benefits of Considering a Mortgage Broker
You have two main financial avenues to explore when buying a house – you can work with the bank/financial institution, or use a mortgage broker to secure a mortgage.
While mortgage brokers were seldom used in the past, they have been growing in popularity since the 2000s. According to the Canadian Association of Accredited Mortgage Professionals (CAAMP) – 60% of homeowners finance their mortgage through the bank and 40% use mortgage brokers.
However, the number of people using brokers is on the rise, and more and more are switching to a broker because of the benefits they offer to consumers.
READ: Tips For Saving For A Mortgage
About mortgage brokers
Ratehub.ca defines mortgages brokers in the following way:
“Independent mortgage brokers are licensed mortgage specialists who have access to multiple lenders and mortgage rates. They essentially negotiate the lowest rate for you, and because they acquire high quantities of mortgage products, mortgage brokers can pass volume discounts directly on to you.”
Mortgage brokers work for you. It is their job to help you find a mortgage based on the information you provide. In this sense, they work as the middleman between yourself and the banks, helping you shop around to find you the best mortgage for your real estate needs.
Benefits of a mortgage broker
There are many benefits to using a mortgage broker, including the following:
- They are free: There is no cost to you to use a mortgage broker to help you secure a mortgage.
- Access to multiple lenders: Mortgage brokers have access to mortgage products from multiple financial institutions, providing you with more options than if you were to deal directly with a bank.
- They put the application together for you: Brokers will handle all the paperwork. They will collect your information, help you with your mortgage application, and submit it on your behalf.
- Knowledge of the entire mortgage market: Brokers work with you, regardless of your current financial situation. They have a good idea of which banks and financial institutions are best suited to provide you with the mortgage you need for your home or venture.
- Ideal for people with poor credit ratings: Brokers are your best option if you have poor credit or if you have a unique financial situation. They can help you find solutions that enable you to get a mortgage.
- Brokers do the shopping for you: One of the biggest benefits of working with a broker is that they will do the shopping for you. They deal with the banks and lenders, will negotiate for you, and will come back to you and offer the lowest rates possible.
Questions to Consider When Choosing a Mortgage Broker
As with other service providers, no two mortgage brokers are the same, and this is why you need to be careful when choosing a broker to work with. Here are a number of considerations to think about when comparing your broker options:
- Are they licensed brokers?
- How long have they been in business?
- Do they have a good customer service rating?
- What do previous customers have to say about their work?
- Do they specialize in the type of mortgage you need?
- Which banks and what mortgage products can they offer?
Have you used a mortgage broker? What was your experience? What did you like about them? Would you recommend a broker to others?
Buying a home in 2015? READ: 5 Things You Need To Do Before Buying A Home