I passed my mortgage agent’s license in December of last year and have been talking with my friends and family about what I do and it surprised me to learn that not a lot of people actually know what a mortgage broker does or why they should use one. If there is one thing you can take from this post it is this. If you are seeking out real-estate backed credit (e.g. mortgage for any reason) you MUST talk to a mortgage broker. But why?
- We ask the right questions
Arranging mortgages all day can be a tough job, but it hardens us mortgage agents into financial fighters, credit combatants, money mercenaries, you get the point. We have extensive knowledge of the many different mortgage solutions that exist for folks in all types of situations, and can provide well informed guidance toward the products which best suit your unique needs.
- We shop around
When you are looking to buy something that costs more than $1,000, do you go to one store, hear their pitch and then buy whatever product they offer you? Wouldn’t it be smart to consider looking at other stores? A mortgage broker is like a personal shopping assistant who can bring you the best from over 45 mortgage lenders. This is the best way to get to know what products are offered across the industry. You could call all the lenders in Canada or the GTA, it wouldn’t be THAT hard, but you could also let a broker point you in the right direction.
- We negotiate on your behalf
Not surprisingly, many clients I have dealt with have issues negotiating with the bank or asking for a better rate. As brokers we demand a better rate. The banks and lenders know us, and know we are fully informed negotiators who know what price it will take to get our clients’ business. This negotiating power and experience combined with our volume as partners of the lenders make us the most suitable champion of your interests.
- We provide service for life
Many lenders will let your mortgage roll over every term and automatically renew you until you re-actively check into your options. Good brokers have a duty to follow up with you every few months to ensure your product is still working for you, and to investigate whether you might benefits from a change in your mortgage. We follow you every step of the way until you are mortgage-free.
Essentially, a mortgage broker is an expert shopper who is paid by the lender to provide you with a mortgage. You have absolutely nothing to lose, and everything to gain by dealing with a mortgage broker. Now that we have cleared that up, happy home buying!
Full disclosure: I am a net-present-value ninja and mortgage agent at Northwood Mortgage. Call me anytime at 416-371-2077.