You have several options when finding the best mortgage rate for your needs. The first is to research different lenders and directly apply for mortgages through several banks, finding the most competitive rates and terms for you. The second is using a mortgage agent who can provide mortgage products from several lenders.
Here are some reasons why you should work with a mortgage agent.
Get to Know Various Lenders
Mortgage agents have access to various lenders and rates. They will help you find the lowest mortgage rate and the best terms. In addition, they can help you search for information about specific lenders.
Up-to-Date Information
There are mortgage calculators and online mortgage comparison sites, but their numbers vary and aren’t always accurate. When you meet with a mortgage agent in person or by phone, they’ll provide up-to-the-minute accurate mortgage numbers to consider.
Make Mortgages More Accessible
A mortgage agent won’t dismiss someone with bad credit or financial challenges that might make a bank reject them. Even with a low credit score or an unusual economic situation, an agent can help find the right mortgage for them.
You Aren’t Tied to a Limited Selection
You may trust and feel comfortable with the same institution if you have been banking with the same institution for years. You ultimately want a mortgage that feels safe and comfortable. However, you’re restricting yourself to their mortgage products. This may mean settling for a poor rate or term.
Reduce the Stress of Buying a Home
You will experience less stress and uncertainty when choosing a lender with the right mortgage terms. A skilled mortgage agent can help you figure that out in a matter of minutes.
Search Beyond the Major Banks
Mortgage agents have relationships with not only the big banks in Canada but also with credit unions and sometimes private or alternative lenders. They may suggest a mortgage option you aren’t aware of. This could save you tens of thousands of dollars over your term.
They Work In Your Favor
A mortgage agent is not legally obligated to work in a bank’s favour or favour a particular lender. They’re working for you and with your needs in mind. They’re always on your side, ensuring your priorities come first. A mortgage agent will not try to sell you a specific mortgage product from a particular bank.
They’re Experts
Mortgage agents deal with mortgages daily. They can offer invaluable guidance on mortgage products, interest rates, and other relevant financial information. They can address your queries and provide guidance on mortgage selection and potential pitfalls.
Receive Help in Applying
A mortgage agent can guide you through the mortgage process, advise you on what documents are needed and assist you with the administrative side of an application. In fact, you can streamline your mortgage application and approval process with an agent there on your behalf to handle pre-approvals, applications, and closing documents.
Save Time and Money
Investigating and analyzing mortgage products can be time-consuming, especially for busy people. A mortgage agent has already done all that work for you, so you can invest your time in other areas, such as finding what real estate you want to buy.
They Have Flexible Schedules
Mortgage agents are willing to accommodate your schedule, even if that means discussing the matter outside of regular business hours.
They Can Advise on Approval Threshold
Some banks have a high threshold for approval, meaning you may be less likely to be approved by specific lenders than others. Based on your unique financial circumstances, a mortgage agent can advise you where you will most likely be approved. This is so you won’t waste time on applications that don’t pan out.
They Can Help Negotiate
A mortgage agent can negotiate on your behalf with lenders. As agents often work with large volumes of clients, they may be able to negotiate a discount based on that. They can leverage their knowledge of mortgages to net you better rates and terms with a lender of your choice.
There Is No Cost to You
A mortgage agent is paid by the lender who receives the loan, not by the client. Talking to a mortgage agent only provides advantages if you’re buying real estate and searching for a mortgage. There is no cost or expense to worry about.
Know Your Financial Status
Before you see a mortgage agent, you must understand your financial situation. This includes knowing your credit score, monthly income, current debts, and any savings for a down payment. Having this information handy helps the mortgage agent find the best options for you and boosts your chances of approval.
Gather the Important Documents
Get all the necessary paperwork together for the mortgage application process. This typically includes proof of income (such as pay stubs and tax returns), bank statements, and details of current debts and assets. Organizing these documents ahead of time will smooth things out for your mortgage agent.
Learn About Different Mortgages
Familiarize yourself with the various mortgage types available, like fixed-rate, variable-rate, and hybrid mortgages. Understanding the differences can help you make better choices and have more meaningful conversations with your mortgage agent about what’s right for you.
Think About Future Financial Plans
When picking a mortgage, consider your long-term financial goals. Consider whether you plan to move soon, how quickly you want to pay off your mortgage, and any potential changes in your finances. Sharing these goals with your mortgage agent can help them provide advice that better matches your plans.
