It's somewhat surprising to me that there are many people out there that just have no idea what I do for a living, and specifically what a Mortgage Broker does. This may have some correlation to a study released by the Canadian Mortgage and Housing Corporation (CMHC) as maybe there just isn't enough education out there in regards to our profession. CMHC reported that only 27% of Canadians use Mortgage Brokers. I've mentioned this statistic before because it's just so surprising to me given that less than 1/3rd of Canadians utilize our services. Mortgage Brokers can potentially save you hundreds, if not thousands of dollars - and the best part is that it's all for free, there is no catch or fine print, no risk and no obligation!
You may be thinking this is just too good to be true and therefore; how exactly does a Mortgage Broker get compensated? Mortgage Brokers are generally paid a finders fee to introduce trustworthy, dependable clientele to a Financial Institution. I use the phrase generally because there are instances where we charge fees for our sevices and these situations are disclosed well in advance of any transaction, such as Commercial or Private Mortgages. Typical Residential Mortgages are not subject to any fees; however, there are exceptions to every rule.
Let's discuss a few of the advantages to utilizing the services of a Mortgage Broker and why it may be in your best interest to do so. Brokers have access to numerous lenders and mortgage products to assist you in successfully financing your home or property. We all have busy lives and the overall goal of securing financing is to purchase your dream home or property. Scheduling appointments with different lenders could take weeks, wouldn't you rather be out with your Real Estate Advisor shopping for that perfect home? I can quickly narrow down a list of lenders that suit you best; this makes comparison shopping fast, easy and convenient.
Who doesn't like incentives, special deals and add-ons? Mortgage Brokers consistently have access to promotions which are sent out from various lenders directly. If there is something that would work for you, our job is to do the math on which offers may be beneficial.
Interest rates, the meat and potatoes of your mortgage...or are they? I would argue they're not. "What is your lowest interest rate?" How many times a day do I hear this...quite frequently and it's not as 'Plain Jane' as it seems. Every person has a different financial report card, this is essentially your credit report. If you have a very strong credit rating you should technically qualify for the lowest discounted rates offered on the rate sheet; it's when your credit rating is not necessarily picture perfect, this is where the grey area starts. So in terms of the question, I will often quote the lowest rate that is available, whether you qualify for that will need to be determined. If you need assistance with your credit, please contact me and I will send you some information to help improve your score.
Interest rates will save you hundreds of dollars over the life of your mortgage, flexibility will save you thousands. Brokers are wizards at researching products that will save you as much money as possible. I encourage you to view my vlog on, "Total cost of borrowing," I am a huge advocate of not only searching out the lowest interest rate that works for you but by finding ingenious ways to save you as much money as feasibly possible throughout your mortgage.
An important note to make is that Mortgage Brokers only need to access your credit bureau once. This is an advantage in more ways than one; if you were rate shopping with different Financial Institutions, accessing your credit bureau multiple times will negatively affect your credit score.
What about paperwork? We require the same documentation as a Financial Institution. As a side note, I am all about convenience so if you do not have time to fill out my secure Application Form, schedule a "Free Consultation," I would be happy to set something up. I find value in meeting all of my clients and I feel this adds to the mortgage experience.
At the end of the day, a Mortgage Broker will work with you and offer a personalized service, it's like having your own financial consultatant at your fingertips. I pride my business on offering you a concierge-like service that will produce real results. My job is not complete once you sign your documents, it's essentially just beginning. If you need assistance with your mortgage or are looking to secure a new one, please contact me anytime, I look forward to hearing from you.
As always, I encourage you to contact me if you have any questions with your current mortgage or are looking for one. Please find me on facebook at Jason Nesseth | Mortgage Specialist | British Columbia and on twitter @jasonmortgages.
"Working with you for the life of your mortgage!"
Jason Nesseth with TMG The Mortgage Group Canada Inc. If you have any questions or comments about this blog, please feel free to call Jason at 604.375.7375, email jason.n@mortgagegroup.com or visit his website at jasonnesseth.com