Benefits Of Using A Mortgage Broker

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These days, every home or condo buyer in Winnipeg knows that, at a very minimum, they need to be pre-approved before shopping for a new home.  But being pre-approved by the RIGHT lender is just as important.  With almost unlimited choices, between Banks, Credit Unions, private lenders and mortgage brokers , whats the best choice for today’s home buyer?  Many are turning to a Mortgage Broker, for a variety of reasons.  Here are some very important ones to consider:

A home is the biggest purchase most of us will ever make.

And a mortgage can be a powerful financial tool. No surprise, then, that a growing number of Canadians have started to ask some smart questions about their mortgage. In fact, more than 30% of all Canadian mortgages are now arranged through a broker. Why? Here are 10 great reasons:

1. Choice.

A mortgage broker has access to mortgages from a huge range of lenders – so their clients have by far the best choice of rates and mortgage options. With partnerships in a vast network of over 50 lending institutions, including banks, credit unions, trusts, national and regional lenders, and non-traditional lenders, your broker can help design the perfect mortgage for you.

2. Independence and objectivity.

A broker actually works for you, not for any one lender. That kind of objectivity means that you – the client – are the focus. They fit the mortgage to the client, not the other way around.

3. Negotiating power.

A broker has negotiating power because the lenders compete for their business. You’ll get the best rate for your situation.

4. Access to rate promotions.

You may not realize it, but there are sales and promotions in the mortgage world, too. Lenders often offer special rate promotions, for example. Your mortgage broker will know about these special offers, and whether they might work in your situation.

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5. Expertise.

An AMP-designated  broker is a financial specialist. That’s the kind of expertise you want to guide you through today’s plentiful lending market. With 35-year amortizations, re-advanceable mortgages (mortgage combined with a line of credit), no income documentation products for the self employed, credit repair and debt consolidation solutions, today there are mortgages for almost any situation. And your independent mortgage broker knows them all.

Happy Buyers used a Mortgage Broker

6. A focused specialist.

A mortgage is a very significant financial event. A certified broker is in only one business, and they do it exceedingly well. That’s what you want: someone who’s focused on the mortgage marketplace and your needs.

7. Rates.

Getting a lower rate can potentially save you thousands of dollars. That’s why more homeowners are more likely to call a mortgage broker to check out their options for their first home loan and at renewal.  Call early; your broker can usually guarantee an interest rate for 90-120 days.

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8. One credit inquiry.

Rate-shopping on your own can actually be hazardous to your credit. Every time a lender checks your credit, the credit bureaus take notice. Too many inquiries and your credit rating can weaken, possibly affecting the rate and terms of your mortgage. Your certified broker does one inquiry only, regardless how many lenders you’re looking at.

9. No cost to you (o.a.c).

As a rule, the winning lender pays compensation to your mortgage broker for the services and solution provided.

10. Personal attention.

You need a mortgage plan that is a custom fit for you, and a broker who keeps in touch with you during your mortgage years. Keep in mind that their business is built primarily through referrals from satisfied customers, so your positive loan experience is essential for their ongoing business growth.  Your mortgage is a big decision and a powerful financial tool.

So if you are in the market for a new home, or need to re-finance a current home, consider using a mortgage broker to get the best deal possible.

Be sure to read:  Closing Costs for Home Buyers.

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75 COMMENTS

  1. Hi, Bo Kauffmann
    Thanks for your valuable information about “BENEFITS OF USING A MORTGAGE BROKER”.

    I want to buy a new home. That’s why i want to contact with mortgage broker.So, do i need Real Estate Lawyer also.Mortgage broker cannot manage Real Estate Lawyer?

    I knew more about mortgage from this site https://sunlitemortgage.com/ . They also provide valuable information.

    Also, i want to mention that , I see your blog regularly. Your blog is very useful to us.

  2. Expertise and Focused Specialist — enough reasons to convince me to use a mortgage broker. When you find that mortgage broker who works well with you, don’t let go. It’s rare to find a good and reliable mortgage broker now.

  3. The reason why Mortgage Brokers exist is to help us with our mortgages. This is something technical and complicated that we need someone who is expert with it to lead us to the right way. I think the only difficult thing here is finding that perfect and trustworthy mortgage broker for you. After you get past that, every thing mortgage related would be smooth sailing.

  4. true if the agent is efficient,reliable and has knowledge, dealing with him will be good because we will provide us with different lending options,there won’t be any issue in discussing with him what all difficulties we have and what exactly what we want, unlike speaking these to a single lending institution.

  5. That no cost to you clause is definitely intriguing. With that said though, How do these brokers get paid if that is the case?

    • They buy mortgages in ‘bulk’ and qualify for much lower rates than you and I. They can then keep a little of that savings for themselves, and pass the rest of the savings on to you…. its a win-win.

  6. It’s funny how I read something about a related article regarding Brokers before this and looking at the process shown here, it further solidifies my opinion. Thanks for the read.

  7. Mortgage brokers definitely have negotiating power. I learned this first hand when trying to buy a house.

  8. There are many advantages why we should use a mortgage broker. Indeed, I agree with all of the above reasons. Useful tips here!

  9. As they say leave it to the pros and I agree. Considering how tedious the process is, I do not want to do all of these alone.

  10. Great information! I sure didn’t no that using a mortgage broker was no cost to me…or at least it shouldn’t be. This give me a new perspective and opens doors for opportunity. Thanks for sharing!

  11. I mean, I totally agree. It is best to consult someone who knows the job inside and out so you’ll know whether you’re making the right investment suited to your budget.

  12. Couldn’t agree more with the article! Very good information. As a mortgage broker we support the industry and its promotion. With mortgage brokers completing nearly half the mortgages in Canada we’re an important part of the mortgage fabric.

  13. This article is as true today as it was when first posted! Thanks Bo, worth while read.

  14. Another great reason I like Mortgage Brokers? They are not restricted to ONE mortgage option……

  15. One of the things I like about Mortgage Brokers is that they are available when I need them…. off hours and weekends as well…

  16. […] For many people, mortgage payments are their single largest expense. Yet, when financing a home, mos…are seven ways mortgage brokers can help:Access to competitive rates Brokers deal with multiple competing lenders and can often access exclusive rates. Based on the number of mortgages brokers complete each year, they also have the power to negotiate rate discounts from lenders, which can be passed on to their clients.A free service Mortgage brokers’ services are typically available at no cost to consumers. Brokers are paid by the lender selected by their clients.Knowledgeable advice Brokers offer consultative service, advice and solutions that are customized to each client’s needs. And unlike banks, brokers work for you.Speed and convenience Brokers will work around a client’s schedule to make the transaction as easy and convenient as possible.Pre-qualification Whether you’re shopping for a new home or refinancing your existing mortgage, a broker can help you obtain a pre-approved mortgage, often with up to a 120-day interest rate guarantee.Preserved credit rating When you shop for a mortgage, there is an accumulation of lender inquiries on your credit bureau report, possibly affecting your credit rating and, ultimately, the rate and terms of your mortgage. This isn’t the case with a mortgage broker, who only does one inquiry yet can still get many competing lenders to quote on your business.Peace of Mind The Canadian Association of Accredited Mortgage Brokers has a stringent Code of Ethics that members are required to adhere to in order to retain membership. […]

  17. I gotta say you're right on the money with this one, Bo!

    I would just add that the special promotions that mortgage brokers get are actually hidden from the general public!! Banks don't advertise special rates or mortgage promotions to the average Joe!

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