Bank or broker…

The simple dream of owning a home is one many Canadians share. But once you’ve found your dream home, do you know where to go from there? If you’re overwhelmed by the prospect of mortgages, then you are in good company. Many Canadians find themselves not knowing where to go for their first mortgage. Additionally, you might start asking whether you should go through a bank or a mortgage broker. 

Most Canadians still apply for mortgages through their personal banks, but there is an increase in first-time buyers’ use of mortgage brokers. What has brought about this shift in first-time buyers, and are they making the right choice? Though any decision regarding finances is highly dependent on the individual, the choice of a broker over a bank for a mortgage is the right one for most.

Where do I start?

There are many reasons why a mortgage broker is better suited for homebuyers. Chief among them is that a mortgage broker is interested in getting the best deal for you. A mortgage broker has the advantage over the bank. Brokers are not tied to a single lender with limited services. A broker has access to many lenders, including some that are not always open to the general public. 

This means that they will do the investigative work for you, ensuring that you receive a mortgage that works best for you and your family’s lifestyle. Another advantage of a mortgage broker is that most in Canada charge no fees. The broker will receive a commission through the institution they receive your mortgage from. This means a perceived barrier that makes some Canadians hesitant to choose a mortgage broker doesn’t exist. You can reach out to a mortgage broker without the worry of hidden costs or consultation fees.

Find your broker

Now that we’ve gone over the advantages of a mortgage broker, it’s time to determine what makes a good mortgage broker. As expressed earlier, your mortgage broker does much of the investigative work for you. However, it is still important that you do your own investigative work into your choice of a mortgage broker. Just like any other profession, not all mortgage brokers are created equal. Therefore, the quality of service is highly dependent on the quality of your broker. 

You should spend as much time as you can on choosing the right fit for you and your family. A good mortgage broker will go through every step of the process with you and ensure you understand everything you need to know about your mortgage. The best mortgage brokers will not only demystify the process of buying your first home, working closely with you and your realtor, but they will be as happy as you are when you are ready to sign the papers and start calling your home yours!

So what’s next?

So, you’ve decided to ditch direct lenders and claim financial independence by choosing a mortgage broker. How will you make the decision of which broker is best for you? A good place to start might be to speak to family or friends that have already been through the process.  This is a decent first step where you might get a glimpse into a particular broker’s methods that they won’t be advertising on their websites. The beauty of living in the 21st century is that we have access to infinite information at our fingertips! 

Once you’ve spoken to friends and family about their experiences and you have a better idea of what to look for, Google “mortgage brokers in my area.” You should find plenty of useful information, including useful articles like the one you’re reading, or the ever-useful reviews that can be found across blogs and even on the brokers’ websites. The best approach in this stage of your research is to read as many mortgage broker’s sites as possible to get a feel of where they differ and what is—or is supposed to be—uniform across brokers throughout Canada and in your province. You should now have the insights to read through third-party reports and reviews in order to make your decision.

Really, what’s next?

Once you’ve done all of the necessary research, you should be able to narrow it down to a few choices. Now it is time to have face-to-face meetings with your potential brokers. You are looking for someone who will work not just for you, but with you. Someone who will meet most, if not all, of the criteria explored above. Buying a home is one of the biggest decisions you will make in your life. Therefore, the consequences of a mortgage that isn’t the right fit for you could be catastrophic. After these initial steps are taken, all your effort will be worth it and you will have chosen a perfect broker for your family. They can now do the rest!

The right mortgage broker for you and your family will make the often scary and confusing experience of getting a mortgage comfortable and simple. Choosing the perfect broker will stop the dream of owning your own home from becoming a financial nightmare. If you’re looking for help in building your financial future and finding the right mortgage product for your goals, get in touch with me here.