Ross Taylor & Associates

Looking for great rates and guidance? Here's why you need a mortgage broker

Are you ready to buy your home but confused where to start? All the formalities involved with making the biggest purchase of your life can get slightly bewildering, to say the least.

Is your application clean? Is your credit history exemplary? And, the most important question - who's going to lend you all that money?

Phew. That's why one doesn't simply jump into the Toronto real estate market without a local mortgage agent by their side.
Who is a mortgage broker?

A mortgage broker is a licensed professional who has all the right contacts and the know-how to get you the best deal. Simply put, a mortgage broker acts as an informed middle man between you and your lender. They'll negotiate on your behalf, help you with paper work, and get you several steps closer to your dream home.

 

Bank vs. Broker

The bank vs. broker debate has been raging for ages. So if you're a first time home buyer, it may be tempting to go straight to your bank because you've built a relationship with them. Banks can look at your overall finances and suggest a mortgage plan that suits your specific needs.

But here's the thing - banks don't just do mortgages. This means that although they may have adequate information to help you out with your mortgage, they're not specialists.

Mortgage brokers on the other hand specialize only in mortgages. They know the market. They know policy changes. In short, they're always on top of things.

Brokers also have tons of valuable connections - banks as well as other lenders such as financial institutions and credit unions. They can shop around for you, negotiate on your behalf, and get you the lowest and best rates. Some of these smaller institutions don't have large overheads as banks do, so they're able to provide mortgage plans at competent rates.

Sure banks have mortgage specialists, but these individuals can only provide limited information - that is, mortgage options provided by the bank.

Consider this - if you approach a travel agent, they can get you airline tickets at discounted rates, tour packages that suit your budget, and even fast track your visa. However, if you walk up to an airline counter, you only walk away with your ticket, full price.

 

The rest of the planning is up to you.

Lastly, banks are more likely to reject your mortgage application or sanction it at a higher interest rate or a lower amount if your credit score isn't great. That's a sinking feeling, isn't it?

Brokers however take this on as a challenge. Low credit score? No problem. They can guide you on improving your score or help you approach lenders who can offer good mortgage plans in spite of a difficult credit history.

Mortgage brokers do all the leg work for you, help you with your application, and continue to offer support after the lender closes the deal. They're licensed professionals who have been helping people for years, have great references, and the good ones have even picked up an award or five.