With the booming housing market across many parts of Canada, this presents an even more challenging climate for home buyers. Despite certain changes set forth by the government, the foreign buyers policy, being one – homes are continually being priced and in many cases sold, at all-time highs.
With that being the current reality, it makes sense that potential home buyers are going to need to take additional steps in order to purchase a new home – on them of them perhaps being, seeking the assistance of a mortgage broker.
Since mortgage brokers are licensed experts in all things mortgages, it makes sense that you would benefit from turning to them for support as you move forward with this next big financial milestone.
Here are 4 Benefits of Mortgage Broker in the Current Housing Market
1) Mortgage Brokers Have Pre-existing Relationships with Lenders
Due to the fact that mortgage brokers already have connections with a variety of lenders, they are able to assist home buyers as they pursue a mortgage. In many cases, and especially in this financial climate, far too many individuals continue to struggle with their credit.
With poor credit or credit that is not considered strong, this might prevent them from being able to simply walk into a bank and be approved for the home loan they need. This however, does not always indicate that the borrower will not be able to manage the payment of their loan.
In any event, a borrower who finds themselves in this situation may not ultimately be able to obtain the mortgage on their own and thus can benefit from the help of a broker. If you enlist the support of a mortgage broker, they will act as the go-between for you and the lender.
Since the mortgage broker already has formed these relationships with them, lenders may be more open to granting these loans, since the brokers themselves also being involved.
2) Mortgage Brokers Can Help you Find Better Rates
Not only do they already have relationships with certain lenders, mortgage brokers also have access to a larger variety of lenders. For example, brokers have relationships with alternative lenders or smaller lenders, who may offer less expensive rates compared to bigger banks.
When it comes to alternative lenders specifically, these may also include those who specialize in offering loans to individuals with less than stellar credit. As mentioned, these days, finances may be tighter and individuals may be carrying around more debt, and their credit scores are likely to reflect this reality.
That said, getting a mortgage from a larger bank may not be possible, and even if they are approved, the interest rates and fees may be much higher. In any even however, it then makes sense to turn to a mortgage broker for help in this area and have more assurance that you can be approved for a more affordable home loan.
3) Mortgage Brokers Perform all the Legwork
Thirdly, as the middle-man, this also means that a mortgage broker can perform the legwork for the borrower, and in turn can minimize the stress associated with the overall mortgage process. Not only can they make the phone calls and complete the paperwork, they can also help the home buyer navigate the overall mortgage process.
With enough to worry about with regards to making such a huge financial commitment, borrowers can certainly benefit from the expertise and the support of a mortgage broker at each and every step along the way.
4) Mortgage Brokers Operate Independently From Banks
As previously mentioned, brokers have access to a variety of lenders and therefore are not obligated to drive a borrower’s business towards a certain mortgage product. On the other hand, mortgage specialists who work for big banks are more limited when it comes to the mortgages they are able to offer.
Since this can translate into certain loans, with perhaps higher rates – this can increase the likelihood of a homebuyer either being denied the loan or walking away paying much higher rates and fees.
When all is said and done, mortgage brokers who operate independently from banks are typically unbiased when it comes to the mortgages they offer and can in turn, work with the borrower to compare prices across a more extensive list of lenders and mortgage options.
It is of course important to find a broker who is reliable and well-versed in the world of mortgages, not to mention one that does actually work independently from larger financial institutions, so that you in fact can have access to more affordable rates.
If you are someone who has been struggling with your finances, and you are unsure of whether you will be able to obtain the mortgage you need, it can be extremely beneficial to turn to someone who understands the ins and outs of this process.
With the way the Canadian housing market has been going, prices may continue to soar – so it is even more important that you have access to as many loan options as possible and can secure the best rates available.