Our Blog


Do You Know Why Using A Mortgage Broker Is Really A Good Idea?

Applying for a mortgage can be a long-winded and complicated process. This is a powerful financial product and it is not something that you can go into without doing your homework. There is a good reason why most borrowers are turning to experienced mortgage brokers for help. Hiring a broker will ensure that you have someone who will help you to better understand your options. Mortgage brokers are in a good position to provide answers and help you to choose the right loan products. Currently more than 25% of all Canadian mortgages are arranged with the help of mortgage brokers.

•    Access to more options

One of the best reasons to use a broker is to benefit from more choice. Mortgage brokers often have access to information that you do not have and they have contacts with a large network of lenders. This means that they are able to offer their clients the best choice of products and rates. With access to a large network of lenders, a mortgage broker can source for a mortgage option that is ideal for you.

•    Objective point of view

Mortgage brokers are independent and they do not work for specific banks or lenders. This means that they can offer objective advice and they work for the borrower. When you hire a mortgage broker, you have a trusted advisor with experience giving you unbiased advice. You can benefit from an objective recommendation about the different financial solutions available from different lenders.

•    Find out the best rates

When you have a broker working for you, you have access to the best interest rates. Getting a mortgage with a lower interest rate can help you to save a huge amount of money over the duration of your mortgage. The mortgage brokers work with many lenders and they are able to negotiate for better rates. According to a Bank of Canada report, using a mortgage broker can reduce rates by an average of 17.5 basis points. This means that by using the broker you can end up saving on your mortgage.

•    Someone to negotiate

You should seek the services of a Mortgage Broker when you want someone who can negotiate for you.

The broker will act in your best interest to ensure that you get the best deal. He or she will negotiate in order to secure the most competitive rates as well as terms that will fit your individual situation. Most people find it difficult to talk to financial lenders and they end up accepting any deal that is on the table. There is also a misconception that lenders terms are fixed and there is no flexibility in mortgage options.  

•    Sales and promotions

When you have a mortgage broker, you can get access to lenders who offer different types of promotions and loan packages that may interest you. In some cases, lenders offer special rate promotions that allow clients to close their mortgage within a reduced period. You can complete the loan payment within a shorter time than normal through a quick close offer. These mortgages are usually offered at discounted interest rates.

•    Get personal attention

Getting personal attention from an expert in the field can be very helpful. The mortgage brokers are specialists who provide guidance and expert advice on different housing market conditions, mortgage products and interest rates. You can benefit from one- stop shopping and you will not have to visit several lenders shopping for the best product. One visit to the mortgage lender can save you time and frustration while you benefit from personal attention.

It is important to know that shopping for mortgage rates yourself can affect your credit rating. When different lenders check your credit, the numerous inquiries can affect your credit rating. A mortgage broker will only carry out one inquiry.