You may be looking to purchase a home in the country, or you may be looking for a fancy city loft, this will no doubt be one of the biggest investments you are going to make. You will need to do a lot of research as well as paperwork. This will include getting the financing needed to make this purchase.
Based on a 2011 survey by the Canada Mortgage and Housing Corporation, 81 percent of recent home buyer will work with a mortgage lender or broker for some advice.
When you decide on a mortgage broker to provide you financing, they will be the in between with you and your lender. These brokers will help find you the best terms and rates. They work with many different lenders to help you get financing that fits your needs.
Here are some reasons to use or to reject the mortgage broker:
1. Mortgage brokers will provide services free of charge to the borrower
Pros: When the broker is paid only when the loan is complete working with them will cost you nothing.
Cons: Brokers are paid by the lender, so they are working for them as well as yours.
2. Mortgage Brokers help people with less than perfect get approved for a loan.
Pros: for people with past credit problems or low incomes the broker may be able to find you better rates then if you spoke to the lender on your own.
Cons: if your credit is not too good you may not be responsible enough to own a home even if the bank will give you a mortgage.
3. Brokers will save you time.
Pros: Brokers will research for you and will complete paperwork as well as working with the lenders. They will make all the contact for you.
Cons: Even if they are saving you time some brokers will compare the rates of a small number of lenders. If you want the best rates, you will need to research yourself. Mortgage rates can be accessed on the internet, and you can use this information to negotiate with lenders by yourself.
When looking for the right financing to fit your needs, there is some information you are going to need to share with the broker or the lending institute.
How often will you be able to make additional payments on your mortgage without a penalty and how much are you able to pay ahead.
Frequency of Payments
You need to pick a frequency that you are comfortable with. This can include making weekly, monthly, or bi-weekly payments.
Penalties for Breaking the Mortgage Terms
Make sure you fully understand the penalties if you break your mortgage contract.
If you are looking for a mortgage broker to help you buy a home or to help you with the financing you need to research the brokers to find one that will work for you. Some lenders may give you a lot of nonsense while others are going to help you through the process and find you a good rate. Do not be afraid to get interview several different ones and check their references.
DLC Origin Mortgages
2608 Granville St #550, Vancouver, BC V6H 3V3