What does a mortgage broker actually do?
- Act as an intermediary between the borrower and lender
- Facilitate the transactions between the two and so much more
- They take care of all of the legwork in hunting down the best mortgage product and interest rates by using their network of financial institutions and lenders.
Why not just go to my bank to get my mortgage?
- When you work with a bank you will only get a single option- the one they give you.
- There are many lenders and financial institutions out there with different mortgage products at different rates and you want to make sure that you are getting the best product and rate.
- A mortgage broker will be able to gain access to your banks products and compare them to those from other lenders in order to ensure that you are getting the best option
- You should make your bank compete for your business and when you work with us, you’ll have an experienced mortgage professional to help you make sense of your choices and understand how each mortgage product could benefit you.
Do mortgage brokers work for the lenders?
- No, we work solely for you, the borrower. It is up to the financial institutions/lenders to compete for your business by showing us their best products and rates
Do I have to pay my mortgage broker?
- No, our services and fees are paid for by the lender. There is absolutely no cost to you!
How do I qualify for the mortgage I want?
- A history of your financial information is required for your application. This includes your gross annual income, credit history, and assets/liabilities (previous and current).
- You will need detailed documents and outlines representing these items. The amount available to borrow will be determined by this information.
What is the difference between a fixed rate and variable rate mortgage?
- With a fixed rate mortgage, the interest rate stays at a consistent, fixed rate throughout the mortgage term; which can vary from 6 months to 10 years depending on your preference. Over the course of the mortgage, more of the payment will count towards the principal amount borrowed and less towards the interest.
- With a variable rate mortgage, the mortgage payments are fixed but the interest rate will fluctuate depending on the Prime Rate. So when rates go up, a larger portion of your payment will go towards interest and when rates go down, more of the payment amount will go towards the principal.
Should I get a pre-approval?
- Yes, there are several benefits to getting pre-approved before you go house hunting
- It will allow you to be able to secure your mortgage rate for a period of time
- It will give you an idea of what you can afford
- It will make you a more competitive buyer as the seller will know that you are a serious buyer and will in turn give you more negotiating power.
- It will help to speed up the closing costs since you will already have most of the paper work completed.
Can a mortgage help me pay off my debt?
- Yes, a mortgage loan is actually a common way of getting rid of debt. Through refinancing, a mortgage can allow you to consolidate your credit card debt, or free up money for other investments even!