For Professional Advice, Work with a Mortgage Broker
When you're a Canadian homebuyer or homeowner-in any stage of your mortgage years-it sometimes feels like everyone wants a piece of you.
That's because mortgages are big. Lenders will tempt you with low rates, or tease you with special promotions. How do you cut through the hype? What you want is a sensible mortgage that's going to make sound financial sense. It's not a lot to ask for, but where do you go for good advice? The banks say they have the answer, while some mortgage brokers will tell you otherwise. Trying to be a smart mortgage shopper can be overwhelming.
That's why it pays to work with a professional who has your best interests at heart-a Mortgage Broker. In an industry with a huge range of expertise, our Mortgage Brokers are the cream of the crop-they've got solid industry experience and they'll use it to design a mortgage that fits with your big financial picture. They do not work for any specific lending institution, but have a network of more than 50 lenders that they'll use to source the best mortgage for you.
Back in the 1970s, mortgage brokers were primarily used for last-resort financing, but over time, they took on more of a consulting role by finding the best rate and providing some education on how to become mortgage-free faster.
Today, Mortgage Brokers are a breakaway group of top brokers who have the skill and expertise to offer advanced mortgage insight and advice-helping clients manage their debt for the creation of wealth.
Here are eight reasons why it's worth partnering with a Mortgage Broker, rather than simply a rep or broker:
- Mortgage Brokers know a mortgage is not just a single transaction done in isolation of your goals and overall financial situation, but that a mortgage can accomplish so much more when properly structured and integrated into your overall financial plan.
- Mortgage Brokers have access to competitive rates, but they also understand there are other critical factors to consider when designing a mortgage, such as features, options, market trends, debt and long-term goals.
- A Mortgage Broker will create a mortgage plan that carries you through to your next goal, whether it's home purchase, real estate investment, vacation property, or paying off debt.
- A Mortgage Broker provides credit advice to help boost your credit rating to ensure access to future wealth-building opportunities and lower lending rates.
- A Mortgage Broker can show you how to strategically use low-interest mortgage debt to safely, conservatively and consistently accumulate assets and build wealth - ask about designing a tax-deductible mortgage.
- Mortgage Brokers understand life doesn't stand still and your mortgage needs may change before your mortgage reaches its maturity date. They keep in touch with you during your mortgage years, offering ongoing information and education on using debt to meet your long-term goals and for wealth-building strategies.
- A Mortgage Broker will explain why 'debt' is not a bad word and how your mortgage can be a powerful financial tool, giving you more options than the traditional "pay-off-your-mortgage-as fast-as-you-can" approach: It's a strategy that's good for some homeowners, but not all.
- Mortgage Brokers look at your mortgage as a financial keystone that can build your wealth, protect you from a financial downturn, and save you thousands of dollars. Our Mortgage Planners can help you make the most of your mortgage.
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Getting Your Home in 5 Steps
A Mortgage Broker is with you every step of the way. From the very early stages of your homebuying journey right through to moving day, a Mortgage Broker can help you navigate the complexities of complex Getting a Home in 5 Steps:
- Meet with a Mortgage Broker
Before you even start looking at houses, you should meet with a Mortgage Broker. You'll discuss your home buying or other borrowing goals related to a mortgage, your family income and assets, the size and source of your down payment, and any liabilities. Your Mortgage Broker will ensure all of your questions or concerns are addressed before developing a mortgage plan that is customized to your needs. The goal is to secure a mortgage with a very competitive rate and the right features to achieve your financial and home-buying objectives.
- Evaluate Your Purchasing Power
It's a good idea to determine the amount of mortgage you can qualify for before you start house hunting. If you qualify for a pre-approved mortgage, you'll be confident in the how much house you can afford and you'll have a guaranteed a rate for a specific period of time. If you don't qualify for a pre- approved mortgage, your Mortgage Broker will help you explore other options and estimate your mortgage-qualifying amount. With an idea of your purchasing power, you can confidently make an offer on your home.
- Loan Submission
Once you've made an offer on a home, your Mortgage Broker will help you complete a mortgage application and ask your permission to do a credit check if one hasn't already been done in the pre-approval process. This application will go to the lender (or lenders) that the two of you agree on. Lenders are selected based on the objectives you've discussed, and your Broker's knowledge of which companies can best meet your requirements. Your lender may need an appraisal of the property, and may verify your employment, mortgage or rent amount, and your down payment. Your lender will look for:
In today's new mortgage world, if you have strong credit and a large down payment, income verification may not be required. Your Mortgage Broker will explain the kind of documentation you need to provide. Once the lender reviews all of the information submitted, you and your Mortgage Broker will then get an approval and will review any "prior to funding" conditions. You will sign any approval documents, including:
- Sufficient established credit
- Proof you can afford the mortgage, such as stable employment, tenure or length of self employment)
- Property condition and marketability
- payment details
- mortgage terms and conditions
- outstanding "pre-funding" conditions, if any, that must be met. You need to make sure these are met and forward any required documents. *Once you have approval you can waive any financing conditions that you may have placed on your offer.
- Get Ready to Move
After your mortgage is approved, you'll make an appointment to meet with your solicitor to provide identification, sign documents that relate to your new home, and review your closing costs. Now you can prepare to move into your new home. Your Mortgage Broker will provide "Closing with Confidence" tips that can help you make sure nothing goes wrong between the time you are mortgage approved and the time you actually move into your new home. Also request our "Countdown to Moving Day" checklist to help your move go as smoothly as possible.
On the day you take possession of your home, your mortgage funds are sent from your lender to your lawyer. If, as part of your mortgage, you've repositioned high-interest debt at a lower mortgage rate to save on interest costs, your lawyer will direct you in paying off those debts. You did it - you and your mortgage Broker have together accomplished an important financial milestone. It's time to move in and enjoy your new home.
Our Mortgage Brokers can help you make your next move.
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