Ontario Mortgage Brokers: A Great Choice and Here's Why | shoptherate.ca Blog

Ontario Mortgage Brokers: A Great Choice and Here's Why

By Shoptherate.ca Team | Last Updated April 23, 2019

Reasons to use Ontario Mortgage Brokers

Shopping for a mortgage is an overwhelming process, especially for first-time buyers. Mortgage rates, mortgage professionals, real estate brokers, mortgage brokering, financial services commission, lowest mortgage rates, and even FSCO are some of the dozens of terms you will have heard that will make any person go dizzy. From interest rates and how much the borrower can afford the actual costs, there are dozens of factors to reckon with. Therefore, it is advisable to consult Ontario Mortgage brokers before you get totally confused.

Mortgage brokers interact with several financial institutions so they provide numerous options and rates. Believe it or not, the rate that you will be able to get from these middlemen is often better than what you could find on your own as a borrower. But why do you actually need mortgage brokers? Keep reading to find out.

What do mortgage brokers actually do?

Mortgage brokers are intermediaries who negotiate mortgage loans for individuals or financial institutions (the mortgage lenders). Their job entails:

  • Searching for loan products on the market
  • Completing legal compliance
  • Assessing the financial circumstances of the clients
  • Helping with the application process and loan settlement
  • Give advice in each and every step

Note that they don’t charge you anything for the services but rather get paid a commission by the loan provider after the settlement of the mortgage.

The advantages of using a mortgage broker

A middleman (mortgage brokers) comes in handy, especially during the mortgage application process. They start by shopping the available loans for you from mortgage lenders. You already know that it takes a lot of time to land a great deal. You have to contact countless lenders and banks. You can comfortably leave this to the broker. They will research on a wide array of loans from different lenders to get you a mortgage that suits your budget. Moreover, they act as reliable sources of mortgage information as they guide you through the process.

They understand credit policies better

Every bank or lending institution has its own guidelines. Unless you understand their policies, getting a loan can become a daunting process. A competent mortgage broker recommends you to the most suitable bank for your specific needs. They also configure the difficult terms so you can understand the options clearly. If you are in a position to make timely lump sum payments, a broker will find terms that allow you to do just that.

Large network

Mortgage brokers have the largest network of loan providers and so they work hard to get you the best terms possible. With many lenders competing to give you a home loan, you have a greater chance to save. Your broker not only consults with bank specialists but non-bank lenders as well.

They assess your financial position to determine your best option

A mortgage broker takes time to discuss your needs and financial circumstances and then works out the amount of loan you can afford. To simplify the process, you are expected to provide supportive documents regarding your identity and financial position. Such documents include bank statements, pay slips, outstanding loans, tax returns, savings, and so on. Once they understand your financial goals and standing, they will give you a list of the available loans for you to compare, including the proposed repayment terms. It is important, therefore, for you to understand what’s most suitable for you. Luckily, the brokers have the right tools to figure this out particularly when you are self-employed.

They understand timing

The relationships that mortgage brokers build over time working with banks are indispensable to clients who think that they might be rejected. They understand which lending institutions are better to reach out to, given individual circumstances especially to first-time property buyers or those whose deposit is lower than 20%.

Unbiased opinion

 The brokers are unbiased and objective. Since they work for numerous lenders, they don’t give biased advice concerning your best solution. Getting you a home loan is their greatest concern. Rest assured that you are dealing with experts who understand the prevailing market conditions as well as interest rates. There is so much you can learn from these licensed financial advisors from potential pitfalls and suitable options for individual needs.

They consider your credit scores

Making too many inquiries with your credit can negatively affect your scores. This can hamper your mortgage application process because some lenders perceive too many credit applications as red flags. But a broker reduces this risk in order to preserve the good rating on your credit.

Unlimited support

Your financial circumstances are reviewed regularly to check whether your borrowing capacity can meet your goals. Brokers are vested in building a long-term relationship with you, so come renewal time they’re shopping for the best rates. So, you don’t have to stick to the same lender for too long just because you have a current account with them.

Mobile service

These professionals are flexible, unlike most lending agencies which require appointments. They are available to you any time you need them. You just need to make a phone call or drop an email. This is the kind of convenience you just need when working through the stress of purchasing a new home. Having a go-between agent working for you makes all the difference.

Free service

You don’t need to worry about paying mortgage brokers because they get commissions from the lenders. But this is not to mean that the mortgage becomes expensive or that the lender will impose extra fees afterward. No. It is in the best interest of brokers to get you a loan so they can earn a living from the lenders and not you. In most cases, the cost of using a mortgage broker is entirely on the lending institution.

Want to buy a home soon? Give an Ontario Mortgage Broker a call today for a flawless experience when buying your first home.

Building a relationship with a Mortgage Broker can make your home financing process much simpler. We understand that your financial situation is bound to change over time, and so do the services. Want to refinance, fix a part of your home or purchase an investment property? No problem. Ontario Mortgage Brokers are here to help. Their assistance will be valuable to you for years to come.