5 Things a Mortgage Broker Does For You That Your Banker Can’t
When you decide to use a mortgage broker rather than dealing directly with the bank, you instantly gain access to their wealth of knowledge and information. Mortgage brokers in Toronto and Canada are there to provide assistance, advice and recommendations for their clients. Most people do not understand their mortgages or the interest rates, terms and options associated with them. By working with a mortgage broker, you greatly increase your chances of getting the lowest mortgage rate available and understanding mortgage products and terms better than before. Mortgage brokers know the ins and outs of the industry and as a client of theirs, you always know that you’re in good hands.
#1- Provide you with a greater understanding of mortgage rates and products
When purchasing a home or refinancing an existing mortgage, an experienced mortgage broker will assist you to make the process go smoothly. Bankers typically don’t have the experience to inform their clients about the true loan process in Canada or the finer details of mortgage products . Without talking to a mortgage broker, you risk not having all the info and advice you need to make an informed decision about your mortgage for a home purchase, refinance or renewal. When you deal with a qualified mortgage broker, you will receive only the best information , important advice and tips. Better yet, it’s completely honest information because the broker values your business more than a bank employee.
#2 – Negotiating a better mortgage rate for you
Your mortgage broker will use your excellent credit history and employment record to obtain a lower rate mortgage for you from the lender. The negotiating process that the broker uses with a mortgage lender will save you a considerable amount of money, so you absolutely need the services of a mortgage broker. The consultation services a broker can offer you could literally save you thousands of dollars throughout the length of your mortgage.
#3 – An evaluation of your credit and employment history and what it means to the lenders
When you apply for a loan, your credit and employment history are essentially “put under the microscope.” They have to evaluate you as an individual and determine whether or not you are qualified for a mortgage and what the approved amount will be. Your mortgage broker will look over these facts with you and tell you what they mean. If you have a strong credit history, that can help you qualify for a larger loan, but your mortgage broker might not suggest using the full approval amount. Mortgage brokers commonly run into banks that are negligent with their approval process and provide customers with loans that are well beyond their capacity to repay. The mortgage broker will examine your credit and employment history and determine what a realistic mortgage is for you.
#4 – A clear understanding of the mortgage options and strategies available to you
A mortgage broker has detailed information about the many types of lenders that can provide you a mortgage. This means a mortgage broker can provide you with more than one mortgage option. This is something that a banker cannot provide. When you consult with a banker, you are limited to the mortgage options of that specific bank. Mortgage brokers simply provide more options and that means better prices. By comparison shopping, your mortgage broker will find you the lowest interest rate mortgage loan. They can also offer you strategies for paying down your mortgage sooner and managing existing unsecured debt payments.
#5 – Review your mortgage every year and provide insight into refinancing, renewals, etc.
Refinancing is a way to reduce your mortgage payments and save money. Typically, a homeowner will refinance their mortgage when they can save money on interest or debts. If you currently have a higher interest rate than what you could obtain if you refinanced your home, then refinancing a mortgage might be a smart option for you. However, interest rates and terms can be tricky to understand and it’s a good idea to have a mortgage broker by your side to review the options for you.