mortgage broker, home financing, for sale, real estate, torontoI purchased my first property over three years ago. The overall experience was a pretty smooth one. I signed the deal to buy a my first property,  put down my deposit, and through the good help of my Realtor, I was pre-approved for a mortgage.

The only thing left to do, was that I had to sign a final deal with the bank to lend me hundreds of thousands of dollars.Part of me was excited, and another part of me was overwhelmed. Is this the best rate I can get? What if I go search elsewhere, will they even give me a mortgage? What if they don’t? I may lose this deal, and a wonderful opportunity to become a first time homeowner. So, I went ahead and signed on the dotted line to complete the transaction.

Three years later, after settling in my first home, and after thousands of dollars of upgrades, I’m glad that I bought at the time that I did. I made all the right moves, except one; I wish that I researched more mortgage options, I’m certain I would have gotten a better rate.

Three years later though, a rate of 3.5% is still fairly competitive amongst the big five banks. I could have used a mortgage brokers, and got a slightly more attractive rate through a smaller institution. However, I didn’t used a mortgage broker, and instead I’m stuck for another two years, with a fixed five year rate that is just alright.

Let my past mini mistake be a lesson to you, and hopefully you’ll get out there, use a mortgage broker to get you the most attractive rate possible.

Who are mortgage brokers?

Mortgage brokers are independent agents who only are self employed. They are responsible for adding additional business to the big banks. Rather than working for one specific lender, mortgage brokers essentially are middle men, brokering the deal between you (their client), and the lending institution.

Rather than shopping at multiple financial institutions and negotiating with each financial institution and hoping that they give you the best deal, it’s one phone call to a mortgage broker and they do the rest for you.

A mortgage broker can do A LOT for you.

Mortgage brokers can help you with all aspects of a mortgage, from figuring out how much you can truly afford, to determining the best mortgage product for you, to finding ways to save you money and pay off your mortgage faster.

Mortgage brokers work best for people who are inexperienced with negotiating, first time home buyers and those who aren’t sure what the best mortgage product is for them or have a less-than-stellar credit rating, they can save time, money and hassle by using a mortgage broker.

For the average Joe who lacks good negotiating skills or someone who might feel they are not in the position to ask for a better rate, possibly due to their credit history, they definitely will find  it easier to not only obtain mortgage rates with Ratesupermarket , but they will find a mortgage broker that works for them and not the lender.

Mortgage brokers are the way to go!

There are so many different mortgage products out there, so anyone can get easily confused, especially first time home buyers. Essentially one becomes overwhelmed with all the information. Enter mortgage brokers, who work for you and not the lender. Mortgage brokers are paid a  fee by the lender, and not by the person who is using the mortgage broker’s service. There is zero cost to the clients, and if a broker ever asks for some sort of a retainer, do your self a favor and walk away, because that’s not the person you want to work with.

Mortgage brokers are the way to go, if you want to save time and eventually money in the long run. According to a survey conducted a few months ago by the Canadian Association of Accredited Mortgage Professionals, roughly 27% of consumers obtained their mortgage from a broker in the previous 12 months. This figured is up 25% from the same time last year.

Consumers are looking for new ways to save money. You’d be foolish to visit each lender, and negotiate each time. Rather you could use a mortgage broker, who already has an established relationships with various lenders, and he or she can do all the negotiating on your behalf. All you have to do is say “Yes” or “No” to what’s being offered to you. You are in control, and who doesn’t like control at the of the day.

Readers, have you ever used a mortgage broker?

Eddie