Sep 19 | Posted by Barry

The simple way to look at mortgages is as a private arrangement between you and your bank. Most people have a foundation of knowledge when it comes to this type of loan, but have neither the means nor the time to investigate its many intricacies; all with the hope of getting a better deal and saving money. Luckily, there's a specialized intermediary to handle your mortgage affairs and streamline the process for the best possible results. Introducing the mortgage broker.

Provincially regulated through CAAMP (Canadian Association of Accredited Mortgage Professionals), they fight on your behalf to advise you on the right type of mortgage to buy and guide you around any restrictions. They’ll also manage all the finer details in the ordeal like applying for a lenders agreement and filing the lender application form; all so it is as stress free as possible.

In Canada, mortgage brokers are paid through a commission and/or a finder’s fee by the lender, so there is very little risk upfront. These commissions typically vary between 0.5% and 1.25% depending on the length of mortgage’s term and are taken off the top of the gross mortgage amount. As the borrower, if a broker is going to charge you a service fee, this must be disclosed at the beginning. Such an instance is only really likely if you have an adverse credit history, which in itself is another noteworthy reason to go through a specialist.

The mortgage market is now more complex and more competitive than ever before. If you were to research through all the major banks, credit unions, trust companies and other financial lenders all by yourself, you would end up spending all your time on this laborious task, and probably drive yourself temporarily mad. This is one of the main reasons by brokers now represent over 30% of the mortgage market. Let them do their job so you can do yours.

Mortgage brokers are updated daily by their stable of contacts at various credit institutions with information like interest rate fluctuations, new public offers and exclusive deals not available on the open market. From this constant exposure, they’ll know what’s best for your particular circumstances. And they are not obligated to any one lender in particular, which allows them to approach your unique situation from an unbiased stance and negotiate for a better interest rate or lower application fees.

All said, it’s in your financial best interest to navigate this multifaceted process through a certified mortgage broker. Think of these experts on mortgage loans as you would real estate brokers for houses. And if you are having problems finding a mortgage broker, start by contacting me and we’ll go from there.