A lot of homebuyers, especially those who are buying a home for the first time, will go to their bank to apply for a mortgage. What they don’t realize is that they could be missing out on better mortgage rates and packages than their lender are offering them. Whether it’s for a first-time mortgage, second mortgage, renewal, or refinance, if you want to get the best deals possible, you really should be going to a mortgage broker. Our Ottawa mortgage broker team is here to tell you why.
Much Lower Rates
A mortgage broker works to find the mortgage package that is best for you and your financial situation. They also have access to hundreds of lenders offering a variety of mortgage packages. This means they can offer you the best rates out there. Many brokers will get a bonus for working with certain lenders, which means they can pass those savings down to you. It also allows you to compare a number of mortgage options.
It Will Save You Time and Money
Shopping around and applying to different lenders can take up a lot of time and could cost you more in the end. It also impacts your credit score when you apply for many loans in a short period of time. When you use a broker, they do the shopping around for you in as little as a few minutes. They take care of the paperwork needed and can find mortgage packages that aren’t offered to the public. Because they are able to find better rates, it will save you money in the long run.
Protects Your Credit Score
As mentioned above, when you apply for any type of line of credit, it leaves a hard check on your credit record. When you have too many hard checks in a short amount of time, it can lower your credit score. Since the rates that you get for a mortgage are based on your credit score, a lower one means you end up paying more. When you use a broker, your credit report is only accessed once and protects your credit score from being impacted, while still being able to see offers from different lenders.
Cut The Costs
Lenders will usually compensate a broker directly, which means those mortgage costs are not passed on to the homebuyer. In cases where a lender does not compensate the broker directly, those fees may be passed on to you for certain mortgage packages. However, a good broker will always make you aware of any charges upfront.
Advice that is Unbiased
When you apply for a mortgage using a lender, the offers and advice they give can be a bit biased because they want to make the most they can out of a mortgage deal. Sometimes, this leads to you being sold a mortgage package that really isn’t the best for you. Brokers, on the other hand, work for you and their main priority is to give you advice that is unbiased. For a broker, it’s referrals from clients that matter. They will go over your finances and needs and find something to match those requirements. With a broker, you know that you are getting the best advice and mortgage package for you.
You can see why it makes sense to use a mortgage broker when you are looking for a mortgage loan. If you have questions about your mortgage options, give our Ottawa mortgage broker team a call today!