FREQUENTLY ASKED QUESTIONS
Looking for the top rated mortgage companies and lowest mortgage rates BC or not sure if using a mortgage broker would be a good choice. Or are you not sure if a mortgage specialist is paid for their service, etc? Get answers to your most asked about mortgage specialists, mortgage broker tips, professional mortgage services, mortgage broker free advice, plus more.
Thank you for your interest in our mortgage services. If you have any question regarding your financing, we encourage you to schedule an appointment or phone consultation with us. We are pleased to offer all types of financing options for all your needs.
What Does A Mortgage Specialist Do?
- A mortgage specialist works with you, the loan originator, to obtain the best mortgage for you. A mortgage that works for you and meets your needs, not the banks.
- A mortgage specialist is an independent mortgage advisor who does not work with just one bank or housing lender, s/he has relationships with many. Based on your needs, a mortgage specialist will go over your goals and your needs with you, and will use this information to identify the best lending product for you.
- A mortgage specialist know the mortgage market better and will then share this information with you, and will provide you with the most relevant lending options for your situation. Based on this information we will give you expert mortgage advice service and select the right mortgage for you.
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Do You Pay A Fee To A Mortgage Broker?
The short answer is no.
Most of the time, the mortgage provider that you select to go with, through your mortgage broker, pays your specialist mortgage broker a referral fee. There are costs associated with setting up a mortgage, and these costs and fees are discussed as part of the process. Costs such as legal and closing costs. All borrowers are responsible for these costs.
There are occasions when a mortgage broker will charge you a fee. These occasions involve special circumstances, such as working with a lender that does not compensate the mortgage broker. These costs and fees should always be discussed up front, and agreed upon, before pursuing any of the related financing avenues.
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Is it Better to go to a Bank OR a Mortgage Broker?
There are benefits and short comings with any mortgage product, be it from a mortgage company, or from a bank. The key is, understanding your situation.
Being crystal clear on your goals, not only for the short term, but medium term and also the long term. Once you are crystal clear on your goals, you also want understand your demographics.
Banks collect information, and they use this information to make money off of you. Understand what the average person in your situation does, can be very valuable. With the above information, you can then review products and offers from each lender – a bank mortgage varies from bank to bank.
With independent mortgage advice, you can identify the best product for you a lot more clearly now. One of the best things you will know is being aware of your loan interest as that is one of the determining factors whether loan payment or loan term would carry interest rate that will be unfavourable going forward.
Is A Mortgage Broker Better Than Bank?
A mortgage broker is better than a bank in the sense that a mortgage broker will help you with securing a better mortgage with a bank.
If you go straight to the bank without the assistance of a mortgage specialist you might get a raw deal. Apart from the fact that the mortgage process might be a bit complex, which normally with any kind of loan – consumer credit check, any existing loans, your job, education, resume, payment history and many other requirements, a home loan application is a specialist job if you are to get a very good deal.
The mortgage loan specialist will know what to do and advice you accordingly rather than just going straight to the mortgage lending bank. Mortgage specialists would know where to find you the best percentage rate, which mortgage lenders are best to approach with your credit history or home equity if you have one, etc. So it is in your best interest as a home buyer to use a mortgage loan specialist to select the best mortgage lenders.
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What is A Typical Mortgage Broker Fee?
When using the services of a mortgage advisor, when it comes to how they get paid there is no typical broker fee because there are varying out of pocket costs for the set up and closing of your mortgage and property. However, which you should be aware of well in advance of your closing.
But as far as how much a mortgage advisor costs, well we have to back track a little bit and get an understanding of the way that the mortgage industry works.
The price of the service is built into your mortgage rate, no matter what. That’s right, even if you are going in to your bank and using a mortgage advisor in branch, or you are using a mortgage specialist from a bank, who is paid on commission and not a salary, or a mortgage broker, who has access to more than just one bank and one lending product, the cost of the service is built into the pricing of your mortgage rate.
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Who Pays A Mortgage Broker?
The price of the service, the loan amount, is built in to your mortgage rate, no matter what.
Here is an illustrative example. If you are going in to your bank and using a mortgage advisor or loan officer in branch, or you are using a mortgage specialist from a bank, who is paid on commission and not a salary, or a mortgage broker, who has access to more than just one bank and one lending product, the cost of the service is built into the pricing of your mortgage rate.
The way it is all set up is like this; your bank branch that you go to, let’s call it ABC bank. While it is all the same bank, under the same umbrella. When you go to ABC bank and do a mortgage application, what ABC bank does is forward that mortgage application to ABC mortgages. It is the same company, under the same umbrella, but a different faction of the bank. Essentially it is operated as a totally separate arm.
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Why would you use A Mortgage Broker?
There are several reasons why you would use a mortgage broker. One of them being that there are many lenders that can only be accessed through the use of mortgage brokers, with products that offer the flexibility that should be important to consumers. Not only do you get the flexibility, but you also get a competitive rate.
The presence of these lenders keep the banks honest. Let’s face it, every lender is in it to make money, and the more you pay on your financing costs, the better it is for their bottom line.
IF there are say, only 5 options to choose from, the market is less competitive, and typically you will see that prices are set higher. However, if there are 100 to 1000 options, then you will see that there may not be as wide a spread among the prices and that there is a lot more competition. The more choice you have, the more on your toys your service providers have to be – which is typically great news for the consumer.
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Is it Good to Use A Mortgage Broker?
When mortgage brokers first came on the scene, many years ago, the thought was that they were only there to help you get financing when you were desperate and your bank turned you away. This may have been true over 40 years ago.
Today, thanks to mortgage brokers, we have access to a competitive marketplace. Yes, that is right. Mortgage brokers keep the industry competitive by their very nature. By bringing options and choice to the consumer, it forces the banks to remain competitive for your business.
There are many lenders that can only be accessed through the use of mortgage brokers, with products that offer the flexibility that should be important to consumers. Not only do you get the flexibility, but you also get a competitive rate.
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What Do I Need To Take To A Mortgage Broker?
What you need to take to a mortgage broker varies depending on the individual policies and procedures. For us, the best place to start is with a 20 minute phone call. You do not need anything.
If we get to it, the most skill testing question we will be asking you is what is your SIN. The rest of the information you should have available at the tip of your tongue.
During this initial call we are often able to address 99% of your questions or concerns. You can even walk away from the call knowing how much you can qualify for, and what the best down payment amount will be for you.
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When Should You Use A Mortgage Broker?
This is a question that we have to break the rules and answer by first asking a clarifying question.
When using the term “broker” what are we referring to? The term can be used to refer to a realtor (real estate broker), or a mortgage broker. In either case, the answer is NO, you do not need a broker to buy a house. Just like you do not need a lawyer to go to court and fight your case. Nor do you need a travel agent to book your trip. You can also say the same thing about a mechanic, to change your brakes.
There is a reason that these professionals are around, and there is value that they provide. The simple answer is, if you see the value that they present, then you hire their services.
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