Why Should I deal with a Mortgage Broker Instead of My Bank?
Your bank is only 1 lender and therefore only has 1 set of mortgage rates and mortgage products to offer you. A mortgage broker has numerous mortgage lenders available to them. All these lenders compete for your business so they are offering the very best mortgage rates possible. Whether it is a Chartered Bank, Trust Company, Mortgage Lender or Private Mortgage Company, Western Canada Mortgage knows where the best rates can be found with the prepayment privileges that are important to you.
Can I get a Mortgage with my Bank going through a Mortgage Broker?
Yes. Because your bank is competing with all the other lenders for the mortgage broker business, they offer the mortgage brokers the lowest rates they can. This often results in a better mortgage rate for you than if you applied on your own.
How Much will it Cost me?
In most cases, the lender pays the brokerage firm. YOU PAY NOTHING!
What is the Difference between a Co-signer and a Guarantor?
A Co-signer is registered on the mortgage title with you. A guarantor guarantees the mortgage, and that the payments will be made. After a period of time, a guarantor can apply to CMHC/GE to be removed off title should the owners of the property be able to qualify on their own.
Apart from Great Rates, what else does a Mortgage Broker do?
A Mortgage Broker knows all the different rules and mortgage products offered by each lender and therefore knows where you would have the best chance of getting your mortgage approved. This helps you to get a quick mortgage approval with a great rate. Your mortgage broker will also explain the mortgage approval in detail and let you know what documents are required to complete your mortgage financing.
Is it Mandatory to Get Mortgage or Life Insurance?
No. But sometimes it is a good idea to get either mortgage insurance or term life insurance. Knowing that your house would be paid off if something should happen to you, gives you peace of mind.
Should I Shop Around to get the Best Canadian Mortgage Rate?
No. A mortgage broker does the shopping for you, so you don't have to. When you go into bank #1 and apply for a mortgage, bank #1 pulls a credit bureau. Then you go into bank #2 and apply for a mortgage, bank #2 pulls a credit bureau and so on. Every time a credit bureau is pulled on Equifax, you lose points on your beacon score. Your beacon score is a score that rises with good credit and lowers with bad credit or too many inquiries. The beacon score is how many lenders determine if you are a good risk. By applying at Western Canada Mortgage, we pull one credit bureau and have the capabilities of sending that same credit bureau to any or all of our 32+ lenders should it be necessary to get you the best mortgage interest rate in Canada. Our Canadian mortgage lenders include companies such as Chartered Banks, Credit Unions, Trust Companies, Mortgage Companies and more.
Article courtesy of: Western Canada Mortgage