Consider a circumstance, where you have made an offer on a property you wish to purchase and it’s been accepted. Alternatively, you may have decided to do a basement renovation and spruce up your current home with an expansion or a new bedroom. You may even be in a position where you need to renew your current mortgage with your existing lender and need advice on what the best rates are given your unique circumstance. So, what are your options? Do you need a home equity loan – or – do you need a second mortgage? What are the mortgage refinance rates, that are tailored to your personal situation?
In the not so distant past, if you needed a mortgage or anything related to borrowing on your home, you just had to stroll into your local bank. Many of us then took the word of the bank representative as the word of gospel without question. In most cases, these bank representatives can only offer you a cookie cutter solution that applies to all individuals that apply for a loan at their bank. Usually, these are younger folk who have not trained as certified mortgage agents and have limited lending experience in Mississauga Ontario.
It is then imperative to do your homework where weighing your borrowing options are concerned. Most banks cannot offer clients a wide roster of mortgage options, in the event you have lost your job or have a blemished credit rating. Where the best mortgage interest rates in Ontario are concerned, one institution cannot be the lowest in the market, as that would result in no competitive landscape in the financial industry. It is at this time, that making use of a mortgage broker professional can help in finding the best terms and interest rates in the market.
Below are just a few reasons to consider when looking to engage in the services of a mortgage broker:
At the very least, if you are looking to negotiate one of the most expensive decisions of your life, it would be wise to speak to a mortgage broker first to get all of your options. Using a broker will give some you some sense of what is out there in the market where banks and lending options are concerned. If you end up deciding to stay with your current bank, that is fine, at the very least, you have done your own research should give you some solace knowing you have done your due diligence in the matter.
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Furthermore, you may be able to negotiate a lower mortgage rate with your current bank by shopping various options with a broker. However, the rate you acquire is not everything! There are many other factors to consider like amortization, mortgage term, monthly payment intervals, pre-payment options and end in term pre-payment privileges.
Accepting your banks first mortgage offer and decision as the final word on the matter can be rather short sighted, as these intuitions usually look to butter their own bread and see you distinctly as a number where profit may be concerned.
Alternatively, a mortgage broker works in the interest of their clients and does not represent any particular bank. They can survey the mortgage lending landscape and determine what options are best for your unique circumstance.
Mortgage brokers also have access to lenders that are not frequently advertised in main stream media. These smaller finance companies in some cases only deal directly with brokers when it comes to lending and have much more attractive terms.
Why use a mortgage broker in Toronto?
There are a number of good reasons why to use a profession broker. And here some of the top reasons why:
- Save yourself some time and in many cases money: Using mortgage professional can save you time as you would not have to apply to multiple lenders all at the same time and very possibly lowering the credit score on your credit report. The broker can handle all of these details for you and apply to these institutions with one mortgage application and one credit report, alleviating you of the stress of having to shop the entire market on you own.
- A decently lower rate: Most financial institutions recognize mortgage brokers as stellar professionals in the industry and afford them and their clients with the best rates with little to no haggling, given the competitive nature of this sector. A broker can hence negotiate on your behalf and potentially save you thousands!
- More choice and an independent review: Brokers usually have preferred lenders that they deal with, who in many cases have the best terms in the market, yet many more options that are not available to most off the street. Ethical brokers will pair you up with a lender that is best suited to your unique circumstances, and not solely because they are paid any referral fee.
- Reasonable costs: In many instances for A lender deals, your mortgage broker is compensated directly by the lender. In more complex events, a brokerage fee will apply and be promptly disclosed in writing for your review and acceptance, if you so chose to proceed with funding in your case. To learn more about a credible mortgage brokerage in Mississauga, click here for further information.
- Shielding you credit score: As described earlier, your broker will be able to apply to dozens of different financial institutions on your behalf with one credit application and not need to pull your credit report for every lender submission. Conversely, if you were to apply to even half a dozen banks and mortgage investment corporations on your own accord, the hit to your credit rating could be seen immediately by the succeeding lender and will demonstrate to them a sort of credit seeking mentality that in some circles is looked at an derogatory, but also reduces your overall credit score. Best to omit this via submitting multiple mortgage applications, and let your broker handle the details.
Thus, based on the above notable points, it does make sense to engage with a competent mortgage broker and explore their services in assisting you with your next mortgage loan.