The next time you’re looking for a mortgage for that new house or you’re up for renewal on your existing mortgage, think about using a mortgage broker — their services are free and they offer you an abundance of choices. Many people are still unfamiliar with what exactly mortgage brokers do. They often think that you go to a broker when the bank says no and you don’t have any other choice. When the reality is that brokers have access to many “A” lenders with the very best rates.
Brokers have access to a vast array of lenders — over 90 institutions, including some of the big banks — which enable these professionals to negotiate the best possible mortgage products and rates on your behalf. Your broker acts as an agent between you and these institutions, ensuring you get the best products, rates and service. Although brokers have access to this many lenders, the reality is that most have around five that they work with on a regular basis. The advantage of this is that a strong relationship can be built with each lender, without being limited to just one. That way, if your particular situation doesn’t happen to fit into one lenders “box”, you have other options without having to fill out another application or have another credit bureau pulled.
In many ways, dealing with a broker is very similar to dealing with a bank. You will get asked many of the same questions, fill out a similar application, and be asked to provide similar documents. Where the two differ mainly is that the bank is going to take that application and submit it to their underwriting department. A broker is going to review the information and find the best fit for it. Finding this might include who has the best rate at that time, who offers the best prepayment options, who has better customer service, who has a particular mortgage product or any number of things that may be important to a particular borrower. It just depends on what is most important to the client. The broker then submits the deal to the chosen lender’s underwriting department for approval.
Mortgage brokers do their homework on available mortgage products and keep themselves abreast of any new products, or changes to existing products, to ensure they find the best mortgage to fit your specific needs.
The top reasons for using a broker are:
•choice — access to multiple financial institutions;
•rates — because brokers can choose from a number of lenders, they can usually offer the best rates;
•costs — using a mortgage broker costs you nothing;
•knowledge — brokers are trained and licensed through the B.C. government; and
•flexibility — clients can choose whether to deal in person, on the phone or by email, whichever is most convenient for them.
So if you are looking to purchase a new home, or refinance your current home, consider using a mortgage broker. All mortgage brokers are subject to the same training and licensing guidelines under the Financial Institution Commission of British Columbia, so you know you are in capable hands.
Dean Bala is a mortgage broker and Realtor working out of the Creston Valley Realty office in Creston. For more information, he can be reached at 250 402-3903 or dean_bala@yahoo.com.