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. Also, don't forget about your options when it comes time to renew your mortgage. Here are 5 questions a home owner should ask (and answer) for themselves before renewing.
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.
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 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.
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.
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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About the Publisher
Bo Kauffmann is a residential real estate agent with over 18 yrs experience in helping buyers and sellers achieve their goals. Inducted into the REMAX Hall of Fame in 2010 and receiving the REMAX Lifetime Achievement Award in 2019, Bo has sold over 500 houses and condos in the Greater Winnipeg market. He is an accredited buyer representative (A.B.R.) and a Luxury Home Marketing Specialist.
Bo provides exceptional service to First-Time Home-Buyers, Seniors looking to downsize and Home Sellers of all ages.
He can be reached easily By E-Mail or call/text him Call/Text Here
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