Mortgage lenders are doubling down on capturing borrowers’ attention with advertising on TV, radio and all over the web. Google ‘mortgage rates in Burlington’ just once, and for the next few months, you’ll be targeted with offers for low-interest rates and easy approvals. With offers so readily available, why would you bother working with a mortgage broker? What can they do for you that the internet can’t? Read on, and you will see that a mortgage broker does a lot more than you may know to help you find the best mortgage.
Does the Legwork to Find the Deals
Despite the advertising, shopping around for mortgage options can be a very time-consuming process. With the variety of lenders and mortgage products on the market, it’s not always clear how to narrow the choices. If hours of internet research and reading the legal terms and conditions is your way of winding down after a busy day, then you should go for it. However, if ten hours a day of Zoom meetings is enough screen time for you, a mortgage broker can take the task of shopping off your hands. They already know what deals are out there and can quickly narrow down the options while you spend your time on other things.
There is also a lot of misinformation on the internet. #shockeralert!!. Many lenders use a ‘clickbait’ marketing approach (usually with a rate attached) but in actuality a ‘teaser rate’ mortgage or an incredibly restrictive terrible mortgage product that you’ll pay more in fees and penalties than you can imagine.
Access to Offers You May Never Find
Most Canadians (upwards of 75%) get their mortgages through one of the big six banks. Banks usually offer one or a few types of mortgage products with published fixed or variable rates. The bank’s goal is to match you up with a mortgage that fits their limited selection. Remember, a bank’s business model is making money by charging interest. Therefore, the more interest they charge the more money they make. For that reason, bankers are compensated and bonused by the average interest rates they can sell to consumers. Mortgage brokers work with multiple lending partners, including banks. They have access to products from many different mortgage companies, so the choices are more numerous. Brokers are looking for a mortgage that is just right for your financial situation and are not incentivized to sell certain mortgage products or higher rates.
Brokers Handle the Paperwork
If a phone call could save you the trouble of filling out countless online applications, would you make it? A mortgage broker can help take the data entry off your hands by collecting your information just once and using it for applications for preapproval and final approval.
Mortgage brokers also advise you on what types of documentation, proof of income and other financial information you’ll need for a smooth transition to final approval. This can be very helpful for self-employed people since lenders may have varying requirements when the typical proof of income (i.e. pay stubs and letters of employment) is not available.
Helps You Compare Apples to Grapefruits
Not all mortgages are the same. Each lender offers a different set of options for repayment, locking in rates, and refinancing, which makes it difficult to accurately compare them. A mortgage broker can explain the features that meet your needs and point out those that won’t help you achieve your financial goals so you can make a more informed decision.
All of the Benefits and None of the Cost
Mortgage brokers work for you and not for the lender. However, there’s no cost to you for their service. You get all the knowledge, advice and support you need to get the right mortgage without any additional fees.
Ultimately, working with a mortgage broker makes it easier for you to choose the right mortgage product with the most favourable interest rates. They take the stress and confusion out of comparing the details and fine print. So why wouldn’t you call a mortgage broker to help you find your next mortgage? Give HW Advantage a call whether you are buying for the first time, renewing a mortgage, searching for a second mortgage or thinking about real estate investment.