Very few people can afford to pay for their property in full. This is by no means a bad thing – property is expensive and it’s perfectly normal for an investment of this size to require long-term financial planning.
That’s what mortgages are all about.
Banks and lenders provide individuals with the option of borrowing money in order to afford a property purchase. But how do you know what kind of lending agreements are out there? The most obvious course of action is to head to your bank. But let’s not be hasty. Banks can only provide you with access to a small slice of the mortgage pie. A qualified mortgage broker, on the other hand, can connect you with lenders of all shapes and sizes, including trust companies, chartered banks, credit unions and private funds.
Brokers: They’re in Your Corner
It’s important to note that mortgage brokers work independently – this means that they have no allegiance to any particular lending agency or bank. They work for you and you alone, so there’s no need to worry about being duped into an agreement that doesn’t have your best interests in mind. Unfortunately, since brokers are independent, it’s sometimes hard for homeowners to know how to find a knowledgable broker in their area. This means that many mortgage seekers miss the opportunity to save a substantial amount during mortgage negotiations.
Mortgage Broker Qualifications
It takes a lot of time and training to become a mortgage broker in Canada. Most provinces require a mortgage broker to pass a licensing exam, as well as complete a combination of educational training and testing. Once licensed, a Canadian mortgage broker is legally able to represent home hunters looking to procure a mortgage from a lender.
The Tangible Benefits of Mortgage Brokers
There are many benefits to working with a mortgage broker. Here are just a few:
- A mortgage broker’s services are free to borrowers. Lender’s pay brokers a finding fee for every agreement they bring in. As such, there is no cost to you.
- There’s no haggling involved. Mortgage brokers do all of the shopping and negotiating for you. It’s their job to scour the market, build relationships, and uncover great rates.
- Your credit score remains protected. Lenders need to know your credit score in order to assess any potential risk. Unfortunately, pulling your credit score multiple times over a short period of time can negatively impact your rating. When you choose to work with a broker, it’s his or her responsibility to provide your score to the lender, which helps protect your credit from unnecessary damages.
- They help you save time. Why do all the legwork yourself when you can have a trained professional do it for you – for free?
- They help save you money. Being loyal to your bank doesn’t automatically guarantee you a better borrowing rate. In most cases, the exact opposite is true. A mortgage broker will compare your bank’s posted rates to other lending sources in order to ensure that you’re awarded the very best option.