So you’re in the market for a mortgage deal but can’t find a lender with competitive rates, or worse, your bank isn’t up to refinance your mortgage. For most, this sounds like the end of the rope; however, there’s one more lifeline to explore before throwing in the towel- mortgage brokers. Mortgage brokers are licensed professionals that act as intermediaries between homebuyers and financing networks. The broker ideally puts their knowledge and experience to work to get the best mortgage deals and rates for the clients. Ordinarily, when the traditional route of bank financing and private mortgage lenders fails, a mortgage broker steps in to save the day.
Hiring the right mortgage broker for you
While that’s one way to put it, mortgage professionals do much more than sniff out pretty deals in the market. On the broader spectrum, brokerages handle all the nitty gritty leading up to the approval, from assessment of proposals to paperwork and negotiation. However compelling the benefits, sifting your way through the pool of 30,000 certified mortgage brokers in Canada is not the most leisurely trip. Don’t sweat it though; we’ve covered you with five simple steps.
Go for references
Your search for the best mortgage broker should begin in your circle. Talk to friends, family, and colleagues that have had a recent mortgage acquisition for firsthand insight. These individuals have often been where you are before and had their fair share of mortgage brokers’ experience. Find out if they have a mortgage broker recommendation for you that’d make your procurement painless.
Do your research
The next step is looking up the suggested intermediaries for conviction; determine whether the reality matches the hype. Go through the recommended broker’s website and portfolio for a bona fide perception of their work and additional information to get you through your search. Alternatively, if your reference hunt wasn’t as fruitful, take the time to explore any high-ranking mortgage brokerages in your local area. Remember to check their reviews and determine their objectivity- do they have you sold?
Mortgage professionals in Canada are ideally regulated by the Mortgage Brokers Lenders and Administrators Act which mandates them to be licensed and certified in the trade. Ensure prospective mortgage dealers meet this requirement before proceeding further with your search. You can determine this by digging through their online portfolio for proof of license and certification. If the broker does not attach this paperwork to their profile, kindly contact them for a copy of their accreditation and legal licensing.
Tip- Don’t forget to crosscheck the training certification with the referenced institution.
Vett prospective brokers
Don’t just stop at credentials. Instead, set up a sit-down with the prospective brokers you discovered throughout your search. Schedule a virtual or physical meeting with the mortgage intermediary and raise any queries or concerns you may have about their service. For instance, you can ask how long of experience the broker has with cases similar to your own. Do they have any challenging mortgage approvals they were able to secure successfully? What financiers do they work with? What gives them an edge over other competing brokerages?
Note- Pay close attention to how the broker responds to your question as it’s often an indicator of their professionalism and knowledge.
Mortgage dealers operate independently; that said, they’re bound to charge a fee for their services. Typically, this rate will come in a commission of 0.5%-1.2% of the total mortgage amount; nevertheless, this rate can vary depending on variables. We always suggest tabling this money conversation before signing any dotted lines. Also, be sure to inquire whether your broker expects payment upfront, in installments, or post the mortgage closing.
Mortgage acquisition and refinancing are huge commitments, and while some people prefer to go through the process independently, it’s always convenient to have some help in your corner. Hiring a professional mortgage broker is a surefire way to take some of that weight off your shoulder. The exercise guarantees expert insight, speedy approval, and a great deal of efficiency in handling all the taxing details that’d usually go into the process. But first, you must find a suitable broker; this comprehensive list will undoubtedly see you through that.