For most Canadians, buying a home is the largest financial decision they will make in their lifetime. Yet, consumers across the country are more likely to painstakingly review dozens of investment possibilities for their portfolios than to scrutinize their mortgage choices.
The mortgage world like the investment world can sometimes be confusing. There is a vast array of choices, open, closed, fixed, variable or floating, long or short amortization, prepayment options, portability and of course the rate itself. Making the right mortgage decision can have a huge impact over the long term.
Many Canadians have an investment advisor to help them sort through all their investment choices. Now Canadians are also beginning to turn to Mortgage Brokers to help them make better mortgage decisions. We are just starting to catch up with our counterparts south of the border, ( American’s rather than Mexican’s for those with less then stellar geography skills) where mortgage brokers currently originate about 70% of the mortgages.
So what is a mortgage broker? ( See my last post or read on for a summary) The role of a mortgage broker is to understand your mortgage needs, seek out the best terms and conditions for your situation, and guide you through the lending process. A mortgage broker does not work for any individual institution or lender, but is independent, and has up to the minute terms for a wide variety of banks and other lending institutions.
There was a time when the banks exercised the view that they “ owned “ their customers, and mortgage brokers were perceived only as a last resort for consumers with less than perfect credit history. However times have changed, and consumers of every type are learning that they can benefit from the professional advice of a mortgage broker.
Just as a good investment advisor can make you thousands of dollars, a good mortgage broker will save you thousands of dollars. Whether you are buying for 1st home or your 5th, renewing your mortgage, or just looking for sound mortgage advice, then you should consider adding a mortgage broker to financial team this year!