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Darcy Schanck Independent Financial Consultant |
Darcy Schanck on Mortgage Brokers - Mississauga Ontario, Canada -
Buying a home is an exciting and
intimidating process at the same time. Although the location of your home is
probably the foremost on your mind, you also need to consider the people that
you will hire to help you. Selecting the professional that will help you with
home buying is just as important as finding your dream home. One of the
professionals that you need to hire is a mortgage broker.
Mortgage brokers are licensed mortgage
experts that work on your behalf when it comes time to decide on the right
mortgage for you. They are not lenders - just the middle person who guides you
and helps connect you with the right lending institution. A broker almost
always receives their fee from the lender (the bank, or credit union) meaning
that their services are free for you.
If you think that it would be better to
go directly to a bank or a mortgage lending institution, you may want to read
about the pros and cons of hiring a mortgage broker in Canada first.
Pros
● They have the expertise to help you find the best
deal and negotiate for a lower rate on your behalf. As mentioned, they have
undergone special education for this.
● They have established a working relationship with
lenders. You can benefit from this working relationship for a smoother and
faster application process.
● They have volume discounts. It is not unlikely
that a mortgage broker will work with multiple borrowers at the same time. If
you all secure a mortgage with the same lender, the broker may be able to
negotiate for a lower rate or better terms for all of you.
● They can provide you with options. Probably the
best part of the service that you will get from a broker is saving you from
having to go to different lenders. They can come to you with the rates and
terms from different lenders and all you have to do is to decide which of them
suits your requirements best. They can also provide their expert opinion about
it.
● They can connect you to lenders that will provide
you the best loan rate despite a bad credit report. In case you have a bad
credit score, you may find it hard to secure a mortgage with a low interest
rate. While this cannot be guaranteed by the mortgage broker, they can still
help hook you up with a lending institution that will serve your needs best.
● They are generally not paid by the borrowers. The
last benefit is you do not have to pay them anything. They earn their income
from the commissions given to them by lenders.
Cons
● They rely on commissions from the lenders. Just
as this can be a benefit, this can also work against you. It might make you
doubt the sincerity of their service being provided to you.
● They may have preferential treatment to some
lenders. If some lenders give higher percentage commissions, they might give
them preference over other lenders that could have given you a better deal.
That could mean you are not getting the complete options that you should have.
● They can make recommendations that may be for the
best interest of their commission rather than your financial situation. It is
but natural for a person to be more loyal to the one providing their source of
income.
You have to be careful when you are
choosing the mortgage broker that will represent you. First of all, they have
to be duly licensed for the province you are in. Secondly, you may want to ask for client references so you
can see how past client relationships have worked out. Lastly, validate
everything that the mortgage broker will tell you. That way, you can be assured
that you are getting the right and complete information from them.
Darcy
Schanck lives in Mississauga Ontario and helps businesses; professionals and
families across Canada better understand their financial options.
Darcy Schanck Financial
(416) 706-5741
dschanck007@gmail.com
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