With tons of Mortgage loan types and rates with different fancy schemes, it is really a drag to sort out the right mortgage. Also, the process of getting a loan approval is really tiresome. And that is why mortgage brokers are so in demand.
Mortgage brokers are licensed professionals who are experts in mortgage loans. They act as the intermediary between the lender and the borrower. They possess the knowledge of entire mortgage market. They have good relationships with the lenders. And also they can provide you the best low rate mortgage. Based on your individual cases, a mortgage broker can advise you about which lender will approve your Application.
Why go to a mortgage broker when there are banks?
Bank mortgage officers represent only the products the bank offers, nothing else. In other words, you don’t have much of a choice. Also, banks may or may not approve your mortgage loan based on your income statements, employment history and other documents. In addition to that, it is up to you to find the lender and the best mortgage rate from the market. And if you are no expert in mortgage rates, you may not find the best deal. You may not even get that loan.
Mortgage brokers are linked with multiple lenders. They are the one-stop shop where you can get all the information and help needed for the mortgage. That’s the important difference. With brokers, you have tons of options. They are the experts in mortgage rates and lenders. They work by getting to know, understanding your problems, your situations and then finding the best lender for you. They know exactly which lender will give you the loan and at what rate. And they don’t just have links to banks. They have links to other financial institutions like trust companies, credit union, small funds and other private lenders. They’ll help you prepare all the required documents and then get the loan approval. They’ll guide you through the entire process from pre-approval to home appraisal. You don’t have to worry about anything.
Pros of Using Mortgage Brokers
- Free consultation: Most of the brokers get commission from the lenders. So, they have the incentive to get a client for them. So, they are happy to give some counselling and advice on buying homes.
- Save your time: You have to shop around the market to know the rates from various lenders. Well, thanks to mortgage brokers, they have already done that for you. They are the one stop shop for all your questions.
- Vast options: If you go to a bank, you will be given a limited amount of choice that the bank offers. With brokers, they have tons of options readily available for you. Even if you have poor credit history, they have alternative lenders who will look at your Application.
- Higher chances of getting approved: Mortgage brokers not only have good experience, they also have good relationships with the lenders.
In 2017, 39 percent of home buyers in Canada used a broker to arrange their mortgage, which was up from 33% in 2016. And according to the report, most of the home buyers are first time buyers. This shows that people now tend towards mortgage brokers than banks, which is fairly obvious why. They have the better deals and the options for you. That is the reason why most of the popular Canadian banks also now sell through mortgage brokers including Scotia Bank, TD Bank, CIBC and Home Trust.
Loved a place to buy and looking for a mortgage broker in Barrie? Or maybe your mortgage term is expiring and you are looking for a better rate? You can contact us right away. We will get you the best mortgage rates in Simcoe County. Call Safdar Raja at 705-896-7252 or visit simcoemortgagebroker.ca to Apply for a Mortgage or Refinancing.