Mortgage Brokers – Getting Competitive Mortgage Quotes and Professional Advice

Mortgage brokers are often overlooked when looking for a mortgage. Many people do not appreciate the savings that can be made by using a broker. when looking for a competitive mortgage quote. Not only can they help save you money, they can also offer you invaluable advice, and help you understand the complexities that mortgages entail. They can break things down into a simple format, which allows you to see exactly what you are getting involved, and more importantly, whether you can truthfully afford it.

Mortgage brokers are yet another type of mortgage originator. They will often represent a large variety of lenders, including mortgage banks and traditional banks and are so influenced, directly and indirectly, by the lenders that they now feel that they can strengthen their own position further at the cost of the intermediary market. There is no other way to look at what is happening, with direct deals, reduction in proc fees and the power they hold with the Gov and FSA. Mortgage brokers are knowledgeable of the laws governing taxes that are related to mortgages. Many homeowners find the tax issues related to the home loan refinance process confusing, but your mortgage broker will guide you through the process.

Mortgage brokers are well equipped to find mortgages which are tailored to many different situations, if your situation is ‘non-standard’ you should consider using a broker. Mortgage brokers are regulated by the Financial Services Authority (FSA) and must abide by rules designed to protect consumers. Before doing business, check that a broker is regulated by using the FSA’s Firm Check Service at http://www.fsa.gov.uk/consumer. Mortgage brokers are looking for indicators that tell them that you can pay the loan back. Among the things they will look at are your credit history and whether you have had stable employment for the last two years.

Mortgage Brokers are paid commission by the mortgage lenders – ranging from 0.25% to 1%. This percentage can amount to a fair sum on a large mortgage. Mortgage brokers are specialists in dealing with customers looking to borrow larger amounts of money as well as often having access to deals that aren’t available or advertised to the general market. Mortgage brokers are not only specialists who can help you decide what kind of mortgage is best for you, but may also be able to offer you other financial advice relevant to the purchase, such as insurance.

Mortgage brokers are responsive and have pioneered the subprime credit market, using innovative loan programs to approve borrowers with less than perfect credit histories. Many would not have been able to enjoy homeownership without the assistance and dedication of a mortgage broker. Mortgage brokers are individuals who take the guesswork out of shopping for a mortgage. They are connected with certain lenders and work hand in hand with them to offer mortgage rates at a more wholesale level. Mortgage Brokers are a tremendous resource when it’s time to purchase or refinance a property. They are able to work with multiple Lenders and are unique in their ability to “shop” your loan across multiple potential financing sources, delivering a custom loan solution tailored to your unique borrower profile.

Why You Should Use a Mortgage Broker

Who Should Use a Mortgage Broker? Everyone!

What is a mortgage broker?

There are still a lot of misconceptions and misunderstandings out there when it comes to mortgage brokers and what they do.

A mortgage broker is a professional who is licensed with the Real Estate Council of Alberta (RECA). In order to obtain this credential, a mortgage broker is required to meet educational and professional conduct requirements, and complete background security checks.

How is a mortgage broker different from a bank?

A mortgage broker should never be compared to your local financial institution. The purpose and function of each is very different. An independent mortgage broker is just that-independent-meaning they have no association with any one lender. That means it’s their job to offer you unbiased advice.

Essentially, they’re experts who are trained and licensed in the business of mortgage financing. Their primary function is to work for you-not the lender! They shop the mortgage market for the best rate, term, and product for the consumer, but they also offer more than this-providing debt consolidation solutions and credit recovery strategies.

Best of all, a mortgage through a broker operates in the same way as the one you would get through your local financing institution. Online banking, accelerated payments, and pre-payment options are all available. It’s easy and hassle-free.

MYTH#1: Interest rates through a mortgage broker are high.
TRUTH: The industry’s lowest interest rates are only available through a mortgage broker.

Why should I use an independent mortgage broker?

It pays to work with a broker who will represent your interests and ensure the mortgage you get is the one that’s best suited to your needs. Mortgage brokers have direct access to every major lender across Canada. Whether it’s a chartered bank, trust or insurance company, or private lender, each offers different rates and product features. Most important for you to know is that many of these lenders are only accessible through a mortgage broker. You will want to ensure you get the one that’s right for you.

Once you have decided where to apply, obtaining mortgage approval is often dependent on the way your application is presented and who it gets sent to. A mortgage broker is trained to present your application so it will get an immediate, positive result. The turnaround time for a broker to get a response from a lender and secure you financing can be within just 1-3 days, depending on the workload of the lender.

Who pays the mortgage broker?

Mortgage brokers get paid a “finder’s fee” for residential mortgages from the lender once the deal has been completed and funded. Therefore, most brokers do not charge clients for their services. To ensure there are no misunderstandings, make sure you ask your mortgage broker upfront if the lender will be paying their fee.

MYTH #2: A mortgage broker only deals with people who have bruised credit
TRUTH: Whether you have good credit or poor credit, a broker can be a valuable asset.

Independent statistics tell the story… the use of mortgages brokers continues to grow in leaps and bounds each year as people get a better understanding of what they do.

If you’re considering using a broker, ask your neighbors or friends who they know or have dealt with in the past. Get to know the broker you’ve selected. Are they affiliated with a lender? How do they go about finding a mortgage? If you’re a busy person, ask if they will come to your office or home to talk about a lender’s offer. Most importantly, ask to review your credit bureau with the broker.

Remember, going through a big bank that offers you only one “posted” rate could cost you thousands of dollars. Why shell out extra money when you don’t have to?

What Exactly is a Mortgage Broker and Why Should I Use One?

Are you undecided about using the services of a mortgage broker or skeptical as to what a mortgage broker can do for you? The purpose of this article is to clarify the many advantages and benefits you will receive when using the services provided by mortgage brokers in Canada. I am optimistic that after reading this article Canadians will have a much better understanding about 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, a mortgage broker is a representative for all of the Canadian lending institutions in Canada. Their function is very similar to that of an insurance broker. A bank representative that works in one particular lending institution is employed by that bank and is aware of every mortgage product that their bank offers. Therefore, when you go into your bank for a mortgage the representative analyzes your situation and chooses the best product their bank offers for your needs. Mortgage brokers act as agents for all Canadian banks, Credit Unions, Trust Companies, finance companies and individual private lenders. Subsequently, when you visit a mortgage broker for mortgage financing they analyze your specific situation and choose the best product from one of the 50 Canadian lending institutions at their disposal.

In Ontario, mortgage brokers are educated professionals who are licensed and regulated by the Financial Services Commission of Ontario (FSCO). FSCO is merely one of the government agencies that monitors the business practices of mortgage brokers, each province has an agency that provides the same service to Canadians. As a result, these agencies certify that Canadians are being given reliable protection, a thorough comprehension of mortgage products, and a standard of service to meet their individual needs.

So, how exactly will you benefit by using a mortgage broker?

Save time: Many people try to shop around their own mortgage by traveling to the 5-6 major Canadian retail banks, which can be very time-consuming. A mortgage broker will meet you where it’s convenient for you and they will shop your mortgage for you saving you a lot of valuable time.

Credit Score: One of the most important considerations for Canadians when shopping around at different banks is their credit score. Each time you go to a bank and apply for a mortgage, they will make a credit inquiry, too many inquiries will negatively affect your credit score. A mortgage broker only requests one credit inquiry and then forwards that to the banks they are shopping.

Save Money: Many people are under the false assumption that it is expensive to use a mortgage broker. In fact, most brokers do not charge any fees because they are paid by the banking institutions for bringing them in business. That’s the best part, you receive unbiased advice about your mortgage and it doesn’t cost you any money.

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 do not play games, they always find their clients the best rates possible. Additionally, as a reward for bringing them millions of dollars per year in business, many banks will offer special rates only available to mortgage brokers for their clients.

Fast Approvals: Usually, a mortgage broker will have your mortgage approved within 24 hours, at the very best interest rates. Even if the retail banks do approve a person’s mortgage fast, it can sometimes take weeks to negotiate them down to their best rate.

Feel At Ease: A mortgage agent will take the time to explain the entire process to the mortgagee, this is especially comforting for first time homebuyers. They will take the time to explain all of the terms and conditions of a mortgage commitment so there are no surprises later. They will usually present more than one option for clients, and be able to explain the differences between each bank, this will help consumers make educated choices about which banks they would rather use.

Where will your next mortgage financing experience be?

Today, it is no longer necessary for Canadians to place their trust blindly in their bank for their mortgages. There is now a vast amount of information available to consumers, with all of the available information it is advantageous for consumers to use the services of a Canadian mortgage broker to help them analyze which products will best suit their needs. Canadians should realize that by using a mortgage broker they are not choosing between a broker and their bank. A mortgage broker can place your mortgage with your bank if that’s what you ultimately decide. What you should ask yourself though is if you are a client at TD Bank do think the bank representative will tell you if Scotia bank has a better interest rate? Your mortgage broker will.