There are no silly questions.
Listed below are a variety of questions to think about when speaking to your mortgage broker:
How long have you been working in the mortgage industry?
Years of experience is essential when it pertains to taking care of challenging mortgages.
What type of education or licensing do you have?
You need to confirm that your mortgage broker is licensed by consulting the Canadian Association of Accredited Mortgage Professionals.
On what do you base your suggestions?
You should make sure that they are providing recommendations for the right reasons. A mortgage broker works for you, and nobody else.
Are there any special conditions that apply to this deal?
Bear in mind any undisclosed costs or unfavorable conditions attached to a no-frills low mortgage rate.
What fees/costs are connected with the rate you have estimated me?
Do not let concealed costs creep up on you. Regularly ask your mortgage broker to break out any charges and fees so you are appropriately notified.
Can I please see the lender’s letter of commitment?
If you are assured a certain rate, be sure to request a letter from the lender verifying that the reviewed rate is undoubtedly locked in.
What is your area of expertise?
Brokers typically facilitate more loans of one form than another. If you are} purchasing a home, make certain you are dealing with a residential expert.
Are you affiliated with any mortgage associations?
Membership to some mortgage associations can possibly be a sign of the broker’s oath to provide} the best Canadian mortgage rate available.
Can you provide me with references?
Ask for names of current clients or real estate agents with whom they have actually worked.
A combination of extensive research and appropriate inquiry should certainly assist you to narrow down your pool of prospective mortgage brokers for the best mortgage rate.
Who should you consult for your mortgage pre-approval?
Handle your mortgage like every other major purchase– that is, be sure you make the effort to compare rates and shop around. Not every Canadian mortgage rate is the same.
When you visit a bank, it’s worth bearing in mind that their loan officers are paid to sell you their products. They will do whatever is required of them to keep you from considering other options.
A mortgage broker is a self-employed agent who works only for you. They are qualified professionals that will help you find the most effective mortgage rate for your unique situation. They compare products from a variety of banks and specialty lenders, and arrange the best low mortgage rate for your needs. The broker works for you, the customer, and most importantly, they are completely free. The lenders pay brokers once they close the mortgage deal.
More Reasons Why Mortgage Brokers Are a Great Choice
- Protect Your Credit Score
- Brokers help to protect your credit rating by only pulling one credit report and using it for all lenders.
- Give You Expert Information
- Mortgage brokers are always up-to-date on the best mortgage rate information.
- Save You Money
- A good mortgage broker can offer tips on how to save money on interest while managing to keep your low mortgage rate payments reasonably priced.
Bank vs. Broker
Which ones suits your needs better– bank or broker?
Types of Mortgages
There are a variety of different kinds of mortgage products available on the market. Typically, mortgages fall under one of the following three categories, open, closed or convertible. A mortgage broker will help you understand the various options.
Make your mortgage hunt less troublesome– contact a mortgage broker today.
Do you understand the difference between your mortgage term and your amortization period?
A frequent source of confusion for potential homebuyers is the difference between a mortgage term and amortization period. A standard Canadian mortgage rate has a 5-year term with a 25-year amortization period.
The mortgage term is the length of time you commit to a low mortgage rate, lender, and associated best mortgage rate terms.
Mortgage Amortization Period
This is the length of time it will take you to repay your whole mortgage. Longer amortization periods lower your month-to-month payments, as you are paying your mortgage off over a greater number of years. But nevertheless, you will pay even more interest over the life of the mortgage.
Maximum Amortization Reduced to 30 years on March 18th, 2011
In January 2011, Minister Flaherty revealed that the maximum amortization duration on all CMHC insured houses would be lowered from 35 to 30 years.
Quite a few home buyers opt for a reduced amortization period leading to greater regular monthly payments if they have the means to do so, understanding that it encourages desirable saving habits and minimizes the overall interest payable.
Short vs. Long Term Amortization Periods
Prepayment privileges set out by your lender will determine whether you can reduce your amortization period, by either enhancing your regular month-to-month payments and/or putting lump sum payments towards the principal. Nevertheless, beyond these privileges, you will typically incur charges for making extra payments. According to the Canadian Association of Mortgage Professionals, 24 % of Canadians benefited from prepayment options in 2009.
What you will need to know.
Are you planning to transfer your mortgage to another property? If you’re trying to sell, chances are you still have a mortgage on the home you currently own. So what happens to your existing mortgage when you want to move on from your current home and purchase a new one?
Well, the reality is you still must repay the remaining mortgage balance, and this will need to be either paid off or transferred to your new home. You will also need to consider that since you are repaying your mortgage early, if you do not have an open mortgage, you may be required to pay a prepayment penalty.
Ask Your Lender
Here’s some information you should speak with your best mortgage rate lender about:
- What amount of my remaining mortgage balance?
- Can the buyer assume or take over my mortgage? If so, what are the requirements for the buyer?
- Am able to pay off the total mortgage balance? If so, is there a prepayment penalty?
- Can you transfer this mortgage to my new property?
Sometimes your lender will waive the penalty if you or the buyer takes out a new Canadian mortgage rate with them. Getting the answers to these questions in writing will avoid any unpleasant surprises later on.
Still have questions? Not a problem, speaking with a low mortgage rate specialist can help you determine what’s best for your personal situation. It’s free and there are no obligations.