When it comes to mortgage financing, more and more Canadians are choosing to work with a professional mortgage broker. According to a study conducted by CMHC, over 25% of mortgages were originated by mortgage brokers.
Canadians are just catching up with our American neighbors, who are far less likely to just walk into their neighborhood bank for a mortgage. Over 70% off all American mortgages were originated by a mortgage broker.
If we follow the U.S. model and that seems most likely, then Canadian are in for changes in the way that they manage their most significant personal asset. It all makes sense, investment returns are not as lucrative as they were just 5 years ago and investors are looking for ways to make gains through avenues that they may have overlooked.
There are some significant benefits to working with an independent mortgage broker. Firstly, let’s compare mortgage expertise: Most banks have one or more representatives who are specifically assigned to assist with mortgages. Their role is to develop mortgage business for the banks. An independent mortgage broker on the other hand is a trained mortgage professional who has met standards for education. The comprehensive training of an independent mortgage broker may exceed the training of their counterpart at the banks. Most importantly the mortgage broker is independent. They are not employee’s of a lending institution, however they have access to terms and conditions for a full spectrum of charted banks, and other lending institutions. Their role is the find the best possible terms and conditions that meet your needs.
Let’s also look at choice: An independent mortgage broker offers you access to many competitive lenders, each with a range of mortgage options. It would take weeks of research, telephoning and personal visits to recreate the range of terms and conditions that a mortgage broker has at their finger tips. Rate information, mortgage options, and payment schedules are up to the minute, so you and your broker can make valid comparisons of the options available. The result of all this choice is a mortgage witch is customized to meet your needs and to save you money.
Also consider accessibility. Your mortgage does not sleep, just kidding, but we are available to you both before and after your mortgage closes. However if you prefer you can be put on hold or get put in an endless voicemail answering loop at your local bank.
Over all clients have turned to mortgage brokers for better terms and conditions. Access to a broad range of lending institutions is also a critical advantage to mortgage shoppers. If we can just save you a quarter point, that can save you thousands of dollars over the life of your mortgage. Many mortgage brokers work with large brokerage firms with sufficient mortgage volumes and that can help get you the best possible rates and terms for your mortgage. Canadian who have used a broker, are more likely to continue using one than to ever return to a world where they have to accept the best posted rate at their local bank.