Why Should You Use a Mortgage Broker?

Are you hesitant to use the services of a mortgage broker or are skeptical about what a mortgage broker can do for you? The purpose of this article is to clarify the many advantages and benefits that you will receive when using the services provided by a mortgage broker in Canada. I am optimistic that after reading this article Canadians will have a better understanding of the services provided by a mortgage broker, and will consider using a mortgage broker for their mortgage financing needs.

What exactly is a mortgage broker?

Basically, the mortgage broker is the representative for all Canadian lending institutions in Canada. Their function is very similar to that of an insurance broker. A bank representative who works for a particular lending institution is employed by that bank and knows every mortgage product their bank offers. Therefore, when you go to your bank for a mortgage, the representative analyzes your situation and selects the best product their bank has to offer for your needs. Mortgage brokers act as agents for all Canadian banks, Credit Unions, Trust Companies, finance companies, and individual private lenders. Next, when you visit a mortgage broker for mortgage financing they analyze your specific situation and choose the best product from one of their 50 Canadian lending institutions.

In Ontario, mortgage brokers are educated professionals licensed and regulated by the Financial Services Commission of Ontario (FSCO). FSCO is just one government agency that monitors the business practices of mortgage brokers, every province has an agency that provides the same services to Canadians. As a result, these institutions state that Canadians are provided with reliable protection, a thorough understanding of mortgage products, and service standards to meet their individual needs.

So, how exactly are you going to profit by using a mortgage broker?

Save time: Many people try to shop around their own mortgage by making trips to 5-6 of Canada’s major retail banks, which can be very time consuming. Mortgage brokers will meet you at a convenient place for you and they will shop your mortgage to save a lot of your precious time.

Credit Score: One of the most important considerations for Canadians when shopping at various banks is their credit score. Every time you go to the bank and apply for a mortgage, they will ask you credit questions, too many questions will negatively affect your credit score. Mortgage brokers only ask one credit question and then forward it to the bank where they shop.

Save Money: Many people are under the wrong assumption that it is expensive to use a mortgage broker. In fact, most brokers do not charge anything because they are paid by the banking institutions to bring them in business. That’s the best part, you receive unbiased advice on your mortgage and it costs you nothing.

Best Rates: Using a mortgage broker guarantees you that you will get the best rates available, independent mortgage agents rely on repeat business so they don’t play around, they always find their clients the best rates. In addition, as a reward for bringing them millions of dollars a year in business, many banks will offer special rates that are only available to mortgage brokers for their clients.

Quick Approval: Usually, a mortgage broker will approve your mortgage within 24 hours, at the best interest rate. Even if a retail bank approves someone’s mortgage quickly, it can sometimes take weeks to negotiate it to their best rate.

Feel At Ease: Mortgage agents will take the time to explain the whole process to mortgage recipients, this is very entertaining for first time home buyers. They will take the time to explain all the terms and conditions of the mortgage commitment so there are no surprises later on. They will usually present more than one option to clients, and can explain the differences between each bank, this will help consumers make an educated choice about which bank they prefer.

Where is your next mortgage financing experience?

Today, there is no need for Canadians to place their trust blindly in their bank for their mortgage. Now that there is a huge amount of information available to consumers, with all the information available, it is advantageous for consumers to use the services of a Canadian mortgage broker to help them analyze which product will best suit their needs.