I often work with clients who are first time buyers or who are unsure of the best place to secure a mortgage. One of the options growing in popularity is getting your mortgage from a mortgage broker.
The use of mortgage brokers has increased significantly in the last decade. Mortgage brokers give you choice and different options in mortgages that going to one bank simply will not provide. The following outlines some of the benefits of working with a mortgage broker to get a mortgage.
Get the Most Competitive Rates
Mortgage shopping can be daunting for those who’ve never done it before. It’s tough to know if you’re getting the best rate, or, if the terms and conditions of the mortgage are best suited to your specific circumstances. This is where a mortgage broker can help. They have relationships with many banks and financial institutions, and are able to provide a variety of options and rates.
Find the Best Specialist
Finding the best mortgage broker to fit your situation is also important. Many specialize in first time buyers, buyers with bad credit or the self-employed.
Like in any other profession, there are good mortgage brokers and bad mortgage brokers. So ask friends, neighbours and other professionals for positive experiences with mortgage brokers. Consumers should properly vet any broker they’re considering working with. Do preliminary research and ask about a broker’s qualifications and years of experience.
Look for Professional Accreditations
Mortgage brokers are required to take courses and pass an exam before they receive their licences. Qualified brokers carry the title of accredited mortgage professional, or AMP. An online directory of licensed mortgage professionals can be found on the website of the Financial Services Commission of Ontario, the licensing body.
Avoid Paying Fees
You shouldn’t have to pay a fee to a mortgage broker, but understand that brokers receive a commission from the financial institution with whom they arrange your mortgage.
Do Your Own Homework
Consumers can check mortgage rates online, on sites such as Rate Supermarket to compare rates offered by different financial institutions.