Choice is a beautiful thing – especially when searching for a mortgage. There are many options available, but only a mortgage broker can bring together offerings from multiple lenders – including banks, credit unions and trust companies – and present you with the very best mortgage products and rates to meet your unique needs.
Professional advice is important when making among the largest financial decisions of your life. Mortgage brokers negotiate with lenders on behalf of borrowers daily, so they know the ins and outs of what's really important when arranging a mortgage based on both the immediate and longer-term needs of each borrower.
Whether you're in the market to purchase your first home, looking to buy another property or if it's time to renew or refinance an existing mortgage, the services offered by a mortgage broker are truly invaluable.
Think longer term
Your mortgage broker will look at your current financial situation and also consider your longer-term goals when helping you select a mortgage that's right for you.
By discussing your longer-term needs and goals with you at the onset of your home and mortgage shopping experience, your mortgage broker will also help ensure you look for properties within your means – avoiding the disappointment of falling in love with a home you simply can't afford.
Not only will your mortgage broker ensure you're preapproved for a mortgage so you know what you can afford upfront, but, should rates increase during your preapproval period, you can also be rest assured you'll be offered the lowest available rate.
While your mortgage rate plays an important role in the affordability of your mortgage, there are a lot of other factors that can end up costing you more down the road if you fail to consider them when negotiating your mortgage terms.
If you opt for a five-year, fixed-rate, "no frills" mortgage product to take advantage of a great rate upfront, for instance, but you then decide to move before the five-year term is up, you may face thousands of dollars in penalties to break your mortgage. These penalties can far outweigh any savings you made in opting for a lower upfront rate.
Your mortgage broker will go over a number of scenarios with you to ensure your needs are met until that glorious day when you become mortgage free.
Use a broker at renewal, refinance
It's just as important to negotiate your mortgage product and rate at your mortgage renewal time as it is the very first time you get a mortgage.
Your mortgage broker should stay in touch with you throughout the life of your mortgage and help you every step of the way. This enables them to reevaluate your needs annually, and assist you with a refinance when you're in need of extra money for such things as paying for renovations or your children's education. You may also wish to buy an investment or rental property down the road.
If you don't understand something your mortgage broker has told you, it's important to ask for clarification. It's their job to ensure you understand all aspects of the mortgage transaction. After all, in most cases, mortgage brokers across Canada are paid by the lender once they successfully place your mortgage. So it's in your broker's best interest to ensure you receive the best possible mortgage product and rate now and as long as you have a mortgage.
If you don't currently have a mortgage broker, you can find an expert near you by visiting: www.MortgageProsCan.ca/findabroker.
Mortgage Professionals Canada (formerly CAAMP) is Canada's national mortgage broker industry association, representing 11,500+ mortgage brokers, lenders, insurers and suppliers from coast to coast.
We recognize that Canadians need and deserve more. The mortgage broker channel creates possibility, fuels the economy and provides Canadians with choice when making an extremely important financial decision.
This content was produced by Randall Anthony Communications, in partnership with The Globe and Mail's advertising department. The Globe's editorial department was not involved in its creation.