The right mortgage is a critical factor determining long-term savings. The value of a professional mortgage broker comes from having someone who objectively works for you and is not limited to mortgage product offerings from one source; like a bank.
Advice on choosing the right mortgage option considers interest rate, payment privileges, payment penalties, long term savings and much more.
Take a look at the differences between my services & the bank’s services
Want Choice?
One of the greatest advantages of using a mortgage broker is getting access to over 50 lenders. A bank will only offer you access to their products, while a mortgage broker can offer you more choices through multiple lenders. With this vast product selection, brokers help homebuyers and owners get the best mortgage for their needs.
What is the best mortgage?
The right rate
The right mortgage privileges
When selecting the right lender your broker will consider:
Term
Rate - variable vs. fixed
Payment flexibility
Pre-payment privileges
Restrictions, fees and penalties
Mortgage portability or assumability
Qualifying with no income verification
(self-employed)
Focusing on a rock-bottom rate can mean higher fees and penalties with more restrictive terms when you want to move, refinance or use your mortgage for a debt consolidation. A mortgage broker will give you a sound evaluation of product choices and together will help you decide what option suits your need.
Refinancing: What You Should Know
Refinancing your mortgage refers to the process of renegotiating your current mortgage agreement for a variety of reasons. Essentially, allowing you to pay off your existing loan and replace it with a new one that better suits your needs. Some reasons you might consider refinancing include, but are not limited to, the following:
You want to leverage large increases in property value
You want to get equity out of the home for upgrades or renovations
You are looking to consolidate your debt
You have kids headed off to college
You are going through a divorce
The Benefit of Rate Holds
The term “rate hold” may be something you are familiar with if you have worked with me in the past. If not, it is a term that all prospective buyers should know!
A rate hold is offered by the majority of lenders to clients who are purchasing a new home and need a mortgage. The purpose of the rate hold is to secure the interest rate on your mortgage application for a certain time period. Often, these holds range from 90-120 days. Bear in mind, these are typically not provided for anyone refinancing their mortgage or looking to transfer it from one lender to another. Only those looking to purchase a home or establish a brand-new mortgage.
Fixed vs. Variable Rate Mortgages
If you are new to the world of mortgages, you probably have a lot of questions - such as whether to choose a fixed-rate mortgage or variable -rate mortgage. Even experienced home owners can sometimes struggle with this, and may wonder if they made the right choice or if they should switch.
Before we get to that, let me explain the differences between fixed and variable-rate mortgages. A fixed-rate mortgage is just that - a fixed amount of interest that you would pay for the term of the mortgage. A variable-rate, on the other hand, is based off of the current Prime Rate, and can fluctuate depending on the markets. Fixed rates are typically tied to the world economy where the variable rate is linked to the Canadian economy.
