Why a Mortgage Broker rather than a Bank?
One of the best comparisons may be what you see daily on TV. As an example, if you are going to get auto insurance you see various companies offering various rates and programs. If you go to just one company you only can obtain their coverage program and their rates. SO.. you use an independent insurance agent that works with various companies rather than just one so there is a wider range of options for your needs.
That is what a Mortgage Broker offers you! A Mortgage Broker has agreements with various mortgage lenders/investors and is able to offer what matches your needs for the best rates and programs.
A Mortgage Broker is an independent professional that takes the loan application, gathers all the required information and papers, processes this information, finds the best fit and program for the borrower and then submits that loan to an investor/lender (the final source of funds) to underwrite and obtain loan approval.
This procedure saves the investor/lender much time and expense and offers to the borrower the “hands-on” and personal care one only gets from using a Mortgage Broker. The employees of the lender/investors get paid a salary whether the loan is closed or not. A Mortgage Broker only gets paid if your loan is closed and funded!
Communication with your Mortgage Broker is essential. Your questions or concerns can be answered at any time. Documents that are needed can be explained and submitted keeping your loan request on track.
Lastly, you will enjoy the pleasant knowledge that the Mortgage Broker will keep in touch with you throughout the process, communicating to you your loan status and loan updates as the process goes along!
Fact in Toronto:
Why A Mortgage Broker In Toronto Mighr Be Better Than A Bank
Why is this?
The main reason is that a Toronto mortgage broker can deal with many more lenders, sometimes up to 100, while a bank can only offer various options of the same mortgage product. Mortgage agents can also get a more competitive price because they offer wholesale mortgage rates which are often discounted, sometimes up to 1.25%. The benefits of this are not just limited to mortgage rates though; a Toronto mortgage broker can find products more tailored to your needs.
Another advantage to using a Toronto mortgage broker over a bank is the convenience. Meetings can be arranged at a customer’s discretion, and often at their home address. Mortgage applications can often only take a day to approve. Best of the entire lender pays the brokers fee, so a client does not have to foot the bill.
A Toronto mortgage broker is also more personable than a high street bank. Even after your mortgage has been approved they are always there should you need any further advice or help.
Other Mortgage Products
But it’s not just first time home buyers who can benefit from a Toronto mortgage broker. When a mortgage is up for renewal, talking to an agent can get you the best advice available and maybe a better mortgage rate.
Talking to a Toronto Mortgage broker can help with refinancing options. For example, explaining the difference between good debt and bad debt. Bad debt is the kind of debt that leads to high interest rates such as credit card debt, unsecured loans, and store cards. Good debt is the kind of debt that can be seen as asset (with prices rising) and can leave you with a good amount of equity when market conditions are right. With a good amount of equity you can often cut your household bills by freeing up your equity and consolidating your bad debts.
Zero down mortgages or 5% cash back
With one of the main reasons why people are being forced out the housing market is being the high amount of deposit needed to secure a property, zero down mortgages or 5% cash back can be great for those struggling to find the 5-25% deposit needed. Even with the recession still looming there are some lenders who are still able to offer these great products and a mortgage broker can often find these for you.
Second Homes or Holiday homes are still in great demand; A Toronto mortgage broker will be able to discuss the financing should you wish to buy a vacation home. Investing in homes is also a great way to build your net worth.
So when considering your mortgage options take time to review whether it's better to speak to a broker or a high street bank.