5 Reasons Why You Should Work With A Mortgage Brokerage

2022-03-11 | 11:25:12

When purchasing a residential property many buyers head straight to their bank to get a mortgage, but this might not be the most prudent way. Buying a home and/or investment property is one of the largest and most important decisions in your life. You want to ensure that you are making the best, informed choices. With this in mind, a better option than heading straight to your bank, is contacting a trusted mortgage agent for the following 5 reasons:

1)      Customized Options

A good mortgage agent works with a number of lenders, including tier one chartered banks and financial institutions, alternative and private lenders. They will know the eligibility criteria and special programs (new to Canada, self-employed, high net worth, etc.) that each of the various lenders offer and they will work to provide you with the best options for your personal needs. A bank can only offer their own products and services, and this can be limiting and may not provide you with your best option.

2)      Best Value

With numerous lending options available, a mortgage agent can also access the best value for you dependent on your needs. This can include the term, type of rate (fixed/variable), amortization, interest rate, pre-payment privileges, and lowest penalties for breaking a term early due to selling or refinancing needs. The chartered banks often have significantly higher penalties when breaking a fixed rate mortgage due to the interest rate differential.  Accessing mortgage funds from tier one financial institutions that specialize in mortgages, and not the big banks, can often save borrowers on lending rates and penalties. That said, mortgage agents also work with chartered banks because they sometimes have more flexible options related to debt ratios and other exceptions that can make sense for a borrower.

3)      Customer Service

The big banks are often busy, short staffed and have many lines of business to focus on (not only mortgages), this means that they often do not spend a great deal of time understanding the borrower’s needs, and provide you with the best options for your future plans. For example, are you planning on moving in a couple of years and selling – if so, you may not want to lock into a 5 year term with a fixed rate because you could end up paying a large penalty to pay off the mortgage when you sell. Banker’s hours and COVID have also made it more difficult to communicate in a two-way fashion as regularly as you might like. With a good mortgage agent, you will be able to communicate with them day, evenings, and weekends, and they can take the time to really walk you through the process and answer any questions. They will also communicate with your real estate agent, appraiser, lawyer, etc. throughout the process to ensure everything goes smoothly. With technology, we can do everything online and over the phone, but we are also flexible and love to meet face-to-face with our clients if they prefer.

4)      Education & Advice

A good mortgage agent will also take the time to explain the approval process from application to funds being forwarded and throughout the term. We will explain what the lenders take into account when figuring out loan eligibility, and the documentation that will be required. We work as financial advisors specializing in mortgages, and can work with you to figure out the numerous variables you will want to consider to have the most effective and efficient mortgage for your personal needs.

5)      Safe Services At No Extra Cost To You

Mortgage agents are licensed and regulated by the FSRA in Ontario (Financial Services Regulatory Authority), and we have to provide due diligence, disclosure and compliance with all laws set up to protect the borrower. We work for you, and not the lender, providing you with the best options for your needs. In the majority of circumstances, the residential borrower does not pay for the mortgage agents services as most deals are done with tier one financial institutions. The lenders pay the mortgage brokerages directly for bringing them business and there are no extra fees passed on to you. The borrower would only pay the mortgage agent a fee (which would be discussed upfront) if they were to take a private or B-lender mortgage or if it was a commercial mortgage. Mortgage agents rely on referrals to build their business (no walks-in or established customers like a bank would have), and therefore, it is of the utmost importance for us to ensure your experience is the best possible. We want to have life-long clients and we want to help you build your future.

As you can see, working with a mortgage agent can save you money, help relieve stress, and provide you with greater knowledge regarding home financing. If you have any questions about mortgages – new mortgages, renewals or refinancing, please feel free to reach out to me by phone or email. It is my pleasure to be of assistance.

See what my clients say about me:

"I worked with Shelley on the recent sale of my townhouse and purchase of my new house. This was the first time I was using a mortgage lender and Shelley made it the least intimidating process possible! If I could give her 6 stars our of 5 I would! She explains everything in great detail, responds to your calls and emails almost immediately, and is very thorough in providing advice and also options that suit your needs. Would HIGHLY recommend her as your next mortgage agent, you can't go wrong :)"

-Nikki

"Shelley is amazing! We had to remove our conditions due to the market being so hot and our appraisal ended up coming back lower than expected, meaning our down payment was going to be much larger than expected. Shelley didn’t give up and kept looking for a lender that would reduce our upfront cost and did so by A TON of money. Would highly recommended working with her!"

- Dre & Adam

"I had contacted many different mortgage brokers prior to working with Shelley. She is undoubtedly one of the best in the business, carrying herself with the utmost professionalism and always quick to respond. No matter how many questions I had (dumb ones included) she would always get back to me with a detailed answer in a timely fashion. Shelley made sure that I had everything I needed to make an educated decision on my purchase. I will continue to work with Shelley going forward, refer family members to her, and I would highly recommend anyone to work with Shelley if you are looking for a mortgage broker who actually cares about you and your success. Thanks for everything Shelley!"

-Tanveer

"As first time home buyers, we contacted Shelley with a lot of questions about the mortgage process. She was very prompt with her responses and was patient at answering all our queries. Once we started the process of loan approval, Shelley kept us updated and informed at each step. Even when we hit a slight hurdle with the bank’s response time, Shelley was constantly updating us and kept us in the loop at all times. Would definitely recommend Shelley for her professionalism and efficient service."

-Nafisa