Securing financing to purchase a home can be a major undertaking.
This is even more true for first-time buyers and particularly in today’s housing market.
Having a licensed and experienced professional on your side throughout the mortgage process can bring countless benefits, not the least of which is peace of mind.
That’s why nearly half of Canadian homebuyers put their trust in a mortgage broker when they are looking to purchase a home or refinance an existing mortgage.
Here’s a quick reminder of just some of the numerous benefits of working with a mortgage broker.
A broker’s main purpose is to get his or her client the most cost-effective mortgage product that best meets their financing needs. A good broker knows the lowest rate doesn’t always save their client the most amount of money. For example, a mortgage with a slightly higher rate will often offer additional flexibility, including superior prepayment privileges, which can save a borrower thousands (or even tens of thousands) of dollars in penalties in the event they need to break the mortgage early. This is just one reason why the lowest rate may not necessarily be the best rate.
Undertaking your research to find competitive rates, along with a mortgage product that offers all the features important to your situation, can be time-consuming and often difficult to know if you are truly comparing apples to apples. And even then, you may only be scratching the surface of what’s out there. A mortgage broker can save you that hassle and present you with various options based on your needs and financial situation, and outline any potential pitfalls with certain offers.
Usually no cost to you for traditional mortgages.
Unlike real estate agents, the services of a mortgage broker are typically at no cost to the client. Instead, the broker is paid what equates to a “finder’s fee” from the lender that arranges the mortgage. Broker fees do apply in some instances in the case of more complicated or non-prime mortgages, as well as commercial deals, but any fees are always discussed with you ahead of time in the rare case that they apply.
Get expert advice.
As I mentioned at the top, buying a home can be an overwhelming process, even in normal economic times—particularly for first-time buyers. But given today’s climate, with interest rates set to rise, home prices increasing like never before, and extremely competitive resale markets, having an expert in your corner is a big advantage, such as when looking at unconditional offers. I follow economic developments and keep a close eye on trends and forecasts in the housing market. I also maintain a large network of mortgage lenders, and in many cases can recommend products that you would never have thought of or found on Google. Use this expertise to your advantage.
By using a team member of First Avenue Financial as your mortgage broker, you can rest assured you are in capable hands and take a largely hands-off approach when it comes to securing your mortgage. We will serve as a conduit between you and the lender, requesting and forwarding all necessary documents to secure the mortgage, and guide you through the entire mortgage process.
If you’re about to embark upon the journey of homeownership, or perhaps want to refinance your existing mortgage to achieve other financial goals, give us a call. We’ll be happy to review your objectives and share our expertise.