10 Great reasons to use a mortgage broker

A mortgage can be a powerful but complicated financial product. As a result, more homeowners are turning to mortgage brokers to help them better understand their options. Mortgage brokers are well positioned to provide the answers and help you get the right mortgage products. In fact, more than a quarter of all Canadian mortgages are now arranged through a mortgage broker.

Here’s why.

1. More choice

Mortgage brokers have access to a large network of lenders and as a result their clients have the best choice of rates and products. With a large network of major lenders to choose from, mortgage brokers can source your ideal mortgage options from banks, credit unions, non-traditional lenders and more.

2. Independent and objective.

Mortgage brokers do not work for a specific lender. They work for you and can make an objective and impartial recommendation on financing solutions through many lenders. A mortgage broker is a trusted advisor who provides unbiased advice on your financial options.

3. Access to the best rates.

Getting a lower rate can save you thousands of dollars over the life of your mortgage. Mortgage brokers have many lenders vying for their business and as a result you are more likely to receive a lower rate. A recent Bank of Canada report stated that “Over the full sample the average impact of a mortgage broker is to reduce rates by 17.5 basis points.” That’s $1,670 of interest savings on a typical $200,000 mortgage over five years. The link below is a quick summary on how to get the best mortgage rates and it speaks to why you need to use the services of a Mortgage Broker.
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2011/02/getting-the-best-mortgage-rate.html

4. We can negotiate for you.

Mortgage brokers act in your best interest and do all the negotiating to secure competitive rates and terms that fit your situation.

5. Rate promotions.

Your mortgage broker has access to lenders that offer many types of promotions and sales that may be of interest to you. For example – some lenders have special rate promotions for clients that are able to close a mortgage in a shorter time frame than normal. These promotions are called quick close offers and generally offered at discounted rates.

6. Experts in our field.

Mortgage brokers are specialists providing expert advice and guidance on mortgage products, interest rates and current housing market conditions. Their knowledge is derived from selling only mortgage and mortgage related products.

7. One stop shopping.

Shopping at several banks can be frustrating, inefficient and extremely time consuming. Your mortgage broker can show you every lenders product offering with just one visit.

8. Preserve your credit rating.

Rate-shopping on your own can actually be hazardous to your credit rating. Every time a lender checks your credit, the credit bureaus take notice. Too many inquiries and your credit rating can weaken, possibly affecting the rate and terms of your mortgage. Your mortgage broker does one inquiry only, regardless how many lenders you’re looking at.

9. Personal attention.

Mortgage brokers are able to work one-on-one with each individual client, evaluate their specific needs and find a lender that suits them personally. You will ultimately receive a mortgage plan that is customized for you and meets your unique requirements.

10. A free service

The services of a mortgage broker are at no cost to you. In general, the winning lender pays compensation to your mortgage broker for the services and solution provided.