If you’re a first time home buyer or real estate investor, your head may be swimming with the sheer variety and volume of lenders and lending products available in the market.

But there is a short-cut to getting the right mortgage deal for your situation. Mortgage brokers keep up-to-date with the latest product offerings from lenders and have intimate knowledge of various features and options. They work as a liaison between the borrower and the lender to negotiate a home loan for their client.

6 reasons to use a broker:

1. Choice: If you go direct to your bank, you will only be offered products from that financial institution. Mortgage brokers have relationships with several different lenders and are knowledgeable across each lender’s range of products.

2. Works for you: As small business owners, word-of-mouth makes or breaks mortgage brokers. Hence they are motivated to act in the clients’ best interests.

3. Skilled negotiators: Mortgage brokers’ skill and experience, combined with their relationship with a lender help them negotiate rates that are often better than what borrowers could achieve on their own.  

4. Goal-orientated:  Are you looking for the cheapest rate? Are you interested in paying off your loan sooner? Are you planning on buying another investment property? A mortgage broker will interview you to find out what you want out of your home loan and work to find the best product to suit your needs and home ownership goals.
5. Paperwork: Mortgage brokers help their clients complete and submit the mortgage application, as well as gather the documentation required by the lender.

6. Read the fine print: After you’ve received your loan approval, the mortgage broker can help you understand the document and conditions of the contract. As well, the broker can walk you through the next steps leading up to the closing of the mortgage transaction.

When choosing a mortgage broker to work with, there are a couple things to look for:

  • AMP member: Make sure the broker is a member of the Canadian Association of Accredited Mortgage Professionals, the national industry association for mortgage professionals. This designation ensures that the broker has completed specified training and adheres to a strict code of ethics.
  • Large lender panel: Your mortgage broker should have access to a wide variety of lenders. If they are unable to conduct business with a lender you are interested in dealing with, then you should question why.

To read more about mortgage brokers, see Mark David's article on Why you still need a mortgage broker.

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