Whether you’re buying your first home or you’ve purchased once or twice before, the home buying process can be overwhelming. No matter how much experience you have, there are so many options to navigate – from choosing a neighbourhood to finding a home – even before you get to deciding on a mortgage. Most Canadians will use a real estate professional to help them with their home search, relying on their guidance and expertise, and their ability to narrow down their options. When it comes to getting a mortgage, Canadians can turn to another professional who can play a similar role – a mortgage broker.
What is a mortgage broker?
A mortgage broker in Canada can play a pivotal role in a homebuyer’s journey. They are intermediaries between borrowers and lenders, and ultimately bring them together to match a borrower’s needs with a mortgage. They are true mortgage experts who have been described as “quarterbacks” or “tour guides” for their ability to help buyers navigate the mortgage landscape and organize the people and paperwork needed to close a mortgage deal. At the end of the day, they simplify the mortgage process from start to finish. This is why Canadian first-time buyers are most likely to use the services of a mortgage broker.
There are many advantages to using a mortgage broker. Here’s a look at the benefits they offer:
A mortgage broker has access to a variety of residential mortgage products, as they have relationships with several different lenders in Canada – from banks to credit unions to mortgage financing companies. As a result, they can do the legwork in reviewing the mortgage options available and matching them with your individual needs and circumstances. This means you can focus your time on other things – such as searching for a home, finding that perfect sofa, investigating kitchen upgrades… whatever you enjoy most about buying a home!
A mortgage broker can save you money
As a mortgage broker assesses the mortgage options out there, they can compare mortgage rates and features to find the best deals for you. They can weigh perks such as cash back offers and introductory rates to see if they will benefit you in the long run, and use their expertise to evaluate a mortgage for its overall advantages. They can also negotiate on your behalf, potentially securing you a lower rate than is published by the lender.
They have access to a wide range of products
Because of the relationships a mortgage broker has with many lenders, they have access to a wide range of mortgage products – many more than if you only worked with one company. This means they can share options that are better customized to your needs – including fixed-rate, adjustable rate, open, closed, insured or conventional mortgage options.
Mortgage brokers provide expert financial advice
Your home is likely the largest purchase you will make. More than just a property, your home is an investment in your future – so the transaction should be approached with careful consideration and with your long-term goals in mind.
Your mortgage broker can provide advice on how much you can comfortably afford, how your mortgage can fit into your current budget and your retirement savings plans, ways to pay off your mortgage faster, how to use your home equity to fund your other goals, and so much more. In other words, they can help you determine how your home – and your mortgage – fits into your financial picture and help you make informed decisions that can set you up for long-term financial stability.
Paperwork support
Applying for a mortgage comes with a considerable amount of paperwork and involves several steps – from getting pre-approved to closing on your home. A licensed mortgage broker reduces the burden by handling the paperwork for you, including applications, agreements, and communications with lenders. They can also cut through the legal and financial verbiage, explaining what the documentation is for and why it’s important.
By having a mortgage broker involved in the paperwork, you’ll also gain the confidence that your interests are protected – your broker will look out for you and ensure you fully understand all the terms and conditions contained within any document.
Pre-approval assistance
An important early step in the homebuying process is to get pre-approved for a mortgage. When you get pre-approved, you gain an understanding of how much you can afford to spend on a home, and it gives both realtors and sellers confidence that you have your finances in order when you’re ready to make an offer. Your mortgage broker can help you secure a pre-approval and guide you through all the steps that come with applying.
Your homebuying quarterback
Buying a home involves several different parties – from your realtor to your real estate lawyer to a home inspector, home appraiser and lender. While all of these professionals are in your corner and committed to creating a smooth homebuying experience for you, managing all of these contacts can feel a little overwhelming – especially if you’re a first-time home buyer. Your mortgage broker can be your quarterback, liaising with the rest of your homebuying team whenever they need to.
And if you don’t have your homebuying team established yet, your mortgage broker will have an extensive network they can draw from and can easily connect you with companies and individuals they feel will work well with you. After all, your mortgage broker will come to get to know you, your preferences and your priorities – and will be your best advocate throughout the process of buying a home and getting a mortgage.
RMG Mortgages works exclusively with mortgage brokers because we believe in their value, expertise, and deep knowledge of the industry. When you work with RMG Mortgages, we will help you Find a Mortgage Broker near you who will provide you with the guidance and support you need to make homeownership happen.