More and more property buyers are choosing Mississauga mortgage brokers to secure a new mortgage or renew an existing mortgage, but why should you use a mortgage broker instead of a bank?
It is common for people to want to use their financial institution when looking for a new mortgage. There is an existing relationship with a level of familiarity between the bank and borrower. Some people assume that all mortgages are essentially the same in terms of mortgage rates and terms so it pays to go with a bank you are already familiar with. This is not the case at all.
Making these types of assumptions today can have very expensive consequences. The major banks are not the only types of financial institutions that are available to secure mortgages. An existing relationship with a bank may help you get a decent mortgage rate, but how will you know you are getting a truly competitive rate that could save you many thousands of dollars over the life of your mortgage? You won’t know unless you shop around.
With a large number of potential lenders available today, it would take a very long time to personally contact each one to receive a mortgage rate quote. Mississauga Mortgage brokers provide a FREE, professional, and very valuable service for clients by doing all the legwork of finding and comparing the best possible mortgage products and rates available. Mortgage brokerages often compare the best rates available from dozens of different lenders (including major lenders, credit unions, trust companies, etc.) and may have access to lower, unadvertised rates. Mortgage brokers can also compare different mortgage terms to find the best mortgage for each client’s specific needs.
Changing the Way Mortgages are Secured
Traditionally, people secured mortgages by physically going into the bank and filling out a mortgage application. This method was uncomfortable and is often regarded as the most intimidating part of the property buying process.
Today, it is possible to apply for a mortgage through a mortgage broker without having to leave your home. Mortgage brokers are independent and objective because they do not work for any specific lenders. They can be a valuable source of expertise and professional advice regarding mortgage terms, rates, various mortgage products, and even current market conditions.
Attempting to negotiate on your own with various banks and lenders is not only time-consuming, but it can also negatively affect your credit rating if each lender performs a separate credit check. A mortgage broker will preserve your credit rating by negotiating on your behalf with many institutions while only performing one credit check.
The Convenience of a Full-Service Mortgage Brokerage
What sorts of services does a full-service broker offer? These can include almost any activity that helps their clients move toward their goals. For a client who’s selling, a full-service broker might set the price and list the property, help to reorganize and stage the house, and show prospective clients through it. In addition, of course, a full-service broker will deal with paperwork, and act as a mentor to the seller.
When the full-service broker is working for a buyer, key duties include helping to inform the buyer about the types of properties available in his/her price range and working to find the ones that match the client’s needs, negotiating with the seller, steering the client through making an offer on the property, drawing up contracts, overseeing inspections, and being present at closing to ensure that everything goes smoothly.
For further information, do contact a Mississauga Brokerage.