Why should you use mortgage broker services; especially now!

Is it worth it to get a Mortgage Broker, are their services needed?

Mortgage rates are currently on a roller coaster ride. People are starting to whisper the word recession. Gas prices. The war in Ukraine. Supply chain issues. And that’s only the tip of the iceberg.

Your biggest investment is your home, so why go at it alone. More than ever, the use of a mortgage broker will only pay dividends. Best of all, it is at no-cost to you.

Let’s demystify the role of a mortgage broker, and demonstrate why they can play a vital role the next time you need to secure a loan to say, purchase a home, refinance your existing house, pull some equity out for an important event such as renovating your home, consolidating debt, or sending one of your kids to college. A mortgage broker can even help you obtain bridge financing to get you over the gap between the purchase of your new home, and the selling of your current one.

How does “l’Autorité des marchés financiers”, the government entity, which supervises the activities of mortgage brokers, define their role: “A mortgage broker acts as an intermediary between you, the borrower, and potential mortgage lenders (usually financial institutions)”.

This definition is too short, a little vague, and does not pay justice to what mortgage brokers really do to facilitate, what can be a very stressful process for you.

A Mortgage broker has services that have direct access to over 20-lenders including the big banks, as well as some virtual financial institutions for which you do not.

A good mortgage broker will walk you through the 3-key elements needed to secure a loan. Terry Kilakos calls it the mortgage triangle, these are: equity, income and credit score. Each plays a determining role on whether you will qualify for a loan, for how much, and with which lender.

Once the mortgage broker has crunched the numbers with you, they will be able to determine approximately how much you can borrow. The broker will tell you what documents they will need to provide in support of this estimate, and will assist you in putting these together in a concise manner. Most brokers are even mobile, and will happily come to you, on your schedule, including weeknights and weekends. It is all part of the service. Best part, at no-cost to you since a mortgage broker is paid by the financial institution on conventional loans.

Once the file is built up, the mortgage broker then goes on the hunt. Amid the numerous lending options they have at hand in order to find the best option for you. Imagine if you had to do the leg work yourself; do you have time to have all those meetings with all those lenders… and, did I mention that some lenders only deal with mortgage brokers so even if you wanted to, you cannot gain access to them.

Important to note, as much as a good rate is important, on variable or fixed mortgages, read the fine print. There are conditions attached to these, which are critical to consider. Your mortgage broker will navigate you through these and point out potential pitfalls.

By the way, condition is a polite word for penalties should you break your term before it comes to fruition.

So to recap:

• Mortgage brokers offer a one-stop-shop for both mortgage options and the kind of expert advice that can help you improve your finances, and look more credit worthy in the eyes of lenders.

• A mortgage broker offers a wide range of mortgage options from a large number of different lenders.
• Mortgage brokers act independently from the financial institutions, they work in your best interest, and are under no obligation to work with any specific lender.
• A mortgage broker will save you time because once you have filled out one application, they can do the shopping for you by having direct access to all the lenders.
• Finally, a mortgage broker has a name and will offer you personalized service.

Still have doubts, spend one-hour with one mortgage broker and test their services. You are under no obligation, and we are convinced you will see the enormous value they offer. The only thing you have to lose is one-hour of your time. The gain will be priceless.

Martin Spalding

Mortgage Broker