5 Reasons Why You Should Use a Broker

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!

Characteristics of Great Mortgage Broker

The main goal of our Ottawa mortgage broker team is to work in your best interests. This means finding a mortgage package that benefits your situation the most. When you are shopping around for a mortgage, you need to find a broker who will do their best for you. There are certain characteristics that you should look for in a broker before you decide to work with them.

Putting Your Best Interests First

As I mentioned above, one of the key characteristics of a great mortgage broker is their ability to know what is best for their clients and then act on that. This means they need to have the experience and knowledge necessary to find mortgage options that will suit your financial circumstances and needs.

Sadly, there are some mortgage brokers who put their needs before their clients. This can result in being given mortgage options that aren’t best for you simply because they will get more commission by selling that particular mortgage package to you. It could end up costing you more in the end.

Detail Oriented

The mortgage process is quite complex and a mortgage broker needs to have that sharp eye for details so that all of the right paperwork is submitted at the right time and transactions take place as they should. All it takes is one major detail to be missed and the whole process is jeopardized. It goes beyond the paperwork though. A great mortgage broker needs to keep you in the loop, let you know about any changes, and should always make sure you understand those little details as well.

Honest and Transparent 

Another characteristic of a great mortgage broker is honesty and transparency with everything they do. If a mortgage broker is promising you more than they can actually deliver because they are desperate to close a deal, that is a warning that they could be hiding things, such as fees, or making changes without telling you. A great mortgage broker is straight and upfront about everything they are doing. They will also tell you if they are unable to do something for you and are realistic when it comes to what you are able to qualify for with a loan. They will give you both the good and the bad.

Upfront with Fees

A broker should always be open about any fees you may be charged from the start. There are some situations where a broker will be given a compensatory fee working with specific lenders for example. This is something they need to let you know. If you have a broker who seems to break out into a sweat every time you ask about fees, it could be a red flag that they aren’t telling you everything.

Your finances and financial situation are a delicate and private area of your life. It makes sense to choose the best broker for the job, who is trustworthy, will work with you and is transparent about everything they are doing.  If you’re looking for an Ottawa mortgage broker that you can trust, give our team a call today!

Canadian Real Estate Market Forecast 2017

The Mortgage Emporium – Mortgage Broker Ottawa 

As trusted Ottawa Mortgage Brokers, we work tirelessly to stay abreast of what’s happening in the market place. Allowing us to offer sound and quality advice to our clients. Many home owners, and prospective home owners are wondering what a Canadian Real Estate Market Forecast in 2017 would like.

2017 Canadian Real Estate Market Forecast

Per the Canadian Real Estate Association (CREA), national sales are forecast to drop in 2017 by 3.3%, compared to the previous year. Specifically, in Ontario, they are looking at home sales to decline in Ontario by 2.7%. To take a look at the full statistics and forecast by province click here to visit CREA’s website.

In its annual year-end report, CREA states: “Transactions in B.C. and Ontario are anticipated to remain strong but fall short of this year’s record levels due to deteriorating affordability, an ongoing shortage of affordably priced listings for single family homes and tightened mortgage regulations.”

Most Canadian markets are leaning towards a flattening out of property prices, with some areas of the country experiencing a decline in both sales activity and prices. As other areas continue to experience price gains, albeit at a much slower pace than we’ve seen in recent years.

Consider the slowing of the Calgary real estate market. We expected aggressive price drops when oil prices crashed, however the market didn’t suffer all that much. Sure, there were price decreases, most neighbourhoods saw price reductions that were less than 5%.

The biggest factor in the predicted 2017 slowdown are the tighter mortgage regulations that were introduced in 2016. “Tightened regulations are expected to reduce the number of first-time buyers who qualify for mortgage financing, particularly in pricier markets, where there is a severe shortage of lower-priced listings.” Click here to read our blog about the change to the Canadian mortgage rules.

If you’re thinking about purchasing a home or refinancing the mortgage your currently have, our Ottawa Mortgage brokers will take the time to discuss your personal and individual financial situation. This way we can offer you the best advice and guidance.

Contact Us Today! The Mortgage Emporium – Mortgage Broker Ottawa