Why it is more important than ever to use a mortgage broker

Since January, the Bank of Canada has increased the overnight rate by 0.5 per cent in an effort to make the housing market and mortgage game more serious. Canadians that are looking at buying a home are facing higher prices and stricter borrowing criteria.  This can leave some with less negotiating power when using a bank to get a mortgage. As shown in the “Canada Mortgage and Housing Corporation’s 2017 Mortgage Consumer Survey,” the majority of borrowers in Canada are still going directly to banks for mortgages and don’t understand how a good mortgage broker can save them money.

So…What is a mortgage broker?

A mortgage broker is an unbiased financial advisor who specializes in offering advice on mortgages. Their job is to help YOU find the most suitable mortgage for your situation. They will also justify why they believe it best suits you. Unlike banks, who deal with a plethora of services on top of mortgages, mortgage professionals specialize solely in mortgages. Having a professional that deals exclusively with mortgages provides borrowers with a higher level of services and expertise when shopping around. A mortgage broker also looks beyond just the mortgage transaction. They allow you to have a deep discussion about your personal and financial goals before the house hunting starts.

I’m still not convinced…How will a mortgage broker benefit me?

Using an unbiased mortgage professional compared to going directly to a bank benefits a home buyer in many ways. A mortgage professional is always on your side. They are there to look out for what’s best for you. Brokers will give you access to more products than if you had gone directly to a lender. When dealing directly with a bank, you are limited to their own products and rates, which may not be what’s best for your situation. Moreover, mortgages are more difficult than they first appear and can easily become complex and time-consuming.

Sounds good…Tell me more!

Mortgage brokers have an extensive knowledge of the industry. This allows them to help make a complex, scary mortgage look a little less scary. With the mortgage criteria tightening in the past year, having someone that understands the application process and the new regulations will benefit borrowers greatly. Your mortgage professional will help take the stress out of the stress test and shop around for the rate and lender that best suit YOU.

If you’ve been thinking about using a mortgage professional or want more information on how a mortgage professional can help you, give us a call at Clinton Wilkins Mortgage Team.