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Is a Mortgage Broker Necessary?

Is a Mortgage Broker Necessary in BC?

Is a Mortgage Broker Necessary in BC

You’re ready to enter the real estate market. The next step is to connect to a mortgage broker, but you can’t help but wonder if doing so is indeed a prerequisite to buying a home. Doesn’t adding a middle-person to the mix muddy the water? It really depends upon your answers to four key questions. Have a look below and decide how you want to proceed.

4 Questions to Ask Yourself When Determining Whether or Not a Mortgage Broker is Necessary for Your Next Home Purchase

Do You Trust the Banks to Offer You the Best Possible Mortgage Terms?

You’ve seen a number of advertisements for mortgage rate specials from BMO, CIBC, RBC, Scotia Bank, and/or TD. Do you trust that the variable rates, fixed rates, and related terms being presented to you in those Google Ads or bus stop billboards are the best that they can do? Do those promotions reflect your unique situation or respect your profession? For example, there are “hidden” programs available to everyone from healthcare workers and other first responders to entrepreneurs and more. A mortgage broker knows ALL of the programs that are available at any point in time. Moreover, they have access to lower than advertised variable and fixed mortgage rates from the big banks. This is made possible due to longstanding relationships that professional brokers have with the banks. The banks offer bulk discounts to brokers for bringing them regular business. Brokers pass these discounted rates to clients (you). An individual approaching banks on their own do not have this sort of access.

Are You Totally Confident in Your Credit History?

Unless you’re totally confident in your length and stability of your credit history, you’re probably a little nervous about approaching the banks for a home loan. You’re worried about them crushing your dream of buying your first home. It’s this sort of thing that has made prospective homeowners procrastinate for years. Once again we identify where a broker can help, and it’s not just about debt consolidation and credit repair services that some offer. What we’re referring to here, is the provision of access to alternative private lenders. These financiers don’t obsess solely over credit history like the big banks tend to do, and look at the big picture (your income, profession, assets, etc.) when providing home loans. View more on private mortgages in BC.

Are You Happy with the Home Options You Can Afford?

You may have done some initial mortgage calculations and came to a general number about what you can afford. Are you happy with that number, and the homes available in your area in that price range? If not, you’ll find that a mortgage broker is necessary. A broker will increase your buyer power so that you may consider homes outside of your initially anticipated price range. This essentially increases the inventory you have to choose from. This is made possible by helping you qualify for first time buyer incentive programs that effectively reduce your downpayment requirements. Other options may be available, such as RRSP home buyer plans, first-time buyer tax credits, new housing rebates, or even green home programs. This is in addition to the aforementioned access to lower unadvertised fixed and variable rates which will ultimately reduce your monthly expenditure requirement. Any of the above will allow you to afford a home in a higher price range.

Do You Have the Time to Manage a Mountain of Red Tape and Paperwork?

Do you pass Canada’s mortgage stress test? Do you even know what Canada’s mortgage stress test is or means? If you’re like most new buyers, you’re rightfully confused about what is required of you. This is just the tip of the iceberg when it comes to the red tape and paper work that you need to cut through when initiating the home purchasing process on your own. From mortgage calculation and pre-approval to mortgage insurance and closing documentation there is a mountain of work to sift through. A mortgage broker will help with it all, and will take on some of it all on their own on your behalf. Better yet, you don’t have to pay a broker for any of it. The mortgage lender is the one to pay the broker a fee or commission after the loan has closed, not you.

Is a mortgage broker necessary? If you answered “no” to any of the above or are even uncertain, then a broker is most certainly essential to your home purchasing process in BC. Let’s get the ball rolling today!

Call Carloni Mortgage Brokers