The first time I heard about mortgage brokers in Canada, I thought to myself that they must be very popular! After all, their job is to find you a mortgage and lock you into it; isn't that what banks do? I soon realized though that they were not as popular as I first thought; many people were still choosing to go with traditional mortgage companies. Let me explain how mortgage brokers work and why you may have better luck with them instead of banking institutions. View here for more info concerning mortgages.
When you apply for a mortgage loan in Canada, you are dealing directly with a mortgage broker. Their job is to find you the best loan rate available at the time while convincing you to sign on the dotted line. Even a 0.1% lower mortgage rate could save you thousand of dollars over the life of the mortgage, giving you more purchasing power right now. So if mortgage brokers could get you that much better rate, why wouldn't you take their services? And if you're thinking of bypassing the broker in order to make your mortgage loan application solely on your own, think again; this decision could cost you more in the long run!
There are two types of mortgage brokers in Canada: real estate professionals and investment or financial advisers. Real estate brokers are usually found in bigger cities such as Toronto or Montreal; they work with large lenders such as Canadian Home Mortgage, CIBC mortgage banking, and other similar players in the market. Some of these lenders may even have their own mortgage brokers division, allowing you to apply directly to them without having to cut through the many layers of paperwork and other red tape associated with applying directly to large mortgage lenders. Contact these experts if you are interested in getting a second mortgage.
In contrast, the main role of investment or financial advisers is to find you the best mortgage rates and the lowest fees. While brokers tend to work with a wide variety of different lenders, only a select few will be in a position to offer you their exclusive services. This means that your choice of lender for your mortgage might be narrowed down by the selection process of the adviser vs. a mortgage broker. When deciding between the two, the decision should not solely be based on the fees and rates offered by the two different companies. If you want the best mortgage rates possible in Canada, it's best to go with a mortgage broker instead of an adviser.
The cost of having a mortgage broker in Canada will differ depending on your need and financial situation. If you simply need to obtain one mortgage loan to consolidate debt, a pre-need mortgage loan can be setup relatively easily and will save you money. If you are a skilled professional with several different mortgages, the cost of advice from a mortgage broker will also be higher. If you have many different mortgages, high interest rates from a large number of different companies, and the desire to diversify your portfolio, the cost of advice will skyrocket once you add the costs associated with mortgage brokers into the equation. So in order to receive the best advice possible, you should find a mortgage broker in Canada that has your best interests in mind.
The right mortgage broker in Canada can help you get the most competitive interest rates available in the country. Most mortgage professionals will be licensed by the RBC mortgage Brokers Association of Canada. Although you won't necessarily find them promoting the products of a particular lender, they should be registered with the association so as to comply with all the rules and regulations set up by the association. To make sure that you're getting unbiased advice, you may want to look up the reviews of various mortgage brokers in Canada before you go ahead and register with any one mortgage broker service. You can do this by searching through the Internet. Besides, here https://www.huffpost.com/entry/4-must-ask-questions-when_b_12114466 are tips on how to pick the right mortgage broker.