Is it really better to use a broker?
The answer is of course yes. It is always preferable to use and independent mortgage broker, as they will not be beholden to any particular financial institution. Mortgage brokers are fast becoming the best method of ensuring that you find the best possible mortgage rate in Canada. One in four Canadians are turning to mortgage brokers for the reason alone.
What does a mortgage broker do exactly?
Doing a lot of research before making any investment is an essential part of the process. Shopping around for the best deal is generally the first step in any buying process. This is exactly what a mortgage broker does on your behalf, while leveraging his or her professional knowledge, experience and contacts. This is also where the very best mortgage brokers take the time to fully understand each of their client’s specific needs and goals. It is vital that at this early stage of working with a mortgage broker you inform them of both your short and long term goals. They will be able to fully tailor the plan to suit your requirements.
How does using a mortgage broker help me save time and money?
Choosing to finance the purchase of your home through a mortgage broker will certainly save you time and money when compared with using a traditional lending institution. Frankly, it makes the most sense, as the mortgage brokers themselves do a great deal of the legal work that you would have to have to find a lawyer to do in addition to the lender anyway. Following this step, the mortgage broker will then take the time to shop around for the best possible deal. Something that you would have to do anyway, with far more experience at this, the mortgage broker will have a much better idea of how to do this and ensure the best possible lending rates.
So who does the mortgage broker work for? Me, or the Bank?
PUNEET GARG EXPERT MORTGAGE works tirelessly on behalf of the client. It is our main goal to ensure that we find the client the best possible deal. We work with multiple lenders to ensure that the product details and rate are not only competitive but some of the lowest around. The key here is to fins an independent mortgage broker and not one that is tied to any bank or financial institution. This will of course affect the level to which that can be impartial. Independent mortgage brokers are dedicated to finding their clients the best possible deal on a mortgage. It’s as simple as that.
So, are Mortgage Brokers middle men?
We are no more middle men than the banks themselves. Banks have direct access to lending institutions in the same way we do. We have access and strong professional relationships to over 40 lenders across Canada. Not only do we have a great network of lenders at our fingertips, but we can get instant approvals from them. This gives us much greater lending and negotiating power.
This sounds wonderful, how much does it cost the client?
Most of our clients are often surprised to discover that the use of our services costs nothing in the vast majority of cases. It is the lender that pays the broker for selecting to place the mortgage with them. Everyone wins in this scenario as the cost associated for a lender to provide a loan through other means is often much higher. Additionally, the mortgage broker is paid on the size of the loan, not the rate. So there is absolutely no motivation for the broker to seek out a higher rate.