If you’re planning on purchasing a home, then you’ll need to get a mortgage (unless you’re independently wealthy, which isn’t the case for most of us). There are two ways to go about this: get financing through a bank or a licensed mortgage professional. Here’s how to get the best mortgage rate, either way.
Get the best mortgage rate #1
Seek out all options
While you may think that there are only a few options when it comes to choosing a mortgage product through a bank, there are a wide range of options when you go with a mortgage broker.
“While banks only offer the products from their particular institution, mortgage brokers send mortgage business to Canada’s largest banks, credit unions, trust companies, and financial institutions – this allows us to offer our clients more choices and access to hundreds of mortgage products,” said Collin Bruce, mortgage broker and franchise owner of the Collin Bruce Mortgage Team.
Get the best mortgage rate #2
Seek out the lowest interest rate
This can vary slightly between banks and brokers, however, according to Bruce, you’ll find the lowest rate with a mortgage broker. “Brokers are paid on the size of the mortgage and the length of term, not the interest rate, which means they are looking out for your best rate.”
“This translates into not only the large monetary savings of a lower cost mortgage option but huge savings in time by having all of the client’s mortgage choices available from a single, expert source,” added Jeff Sparrow, Managing Partner of Castle Mortgage Group in Winnipeg.
Get the best mortgage rate #3
Read and know about the fine print
It’s important that homebuyers pay close attention to all of the clauses on a mortgage agreement. “Everyone thinks they’ll be paying it off as quickly as possible, but you want to be sure there’s a prepayment option and what the terms are,” said Steve Ferrin of Butler Mortgage.
Get the best mortgage rate #4
Go to a one-stop shop
Every home buyer wants as much simplicity as possible when purchasing a property, “and we can help arrange the home insurance broker, life insurance broker and legal services that the clients will need to take care of to complete the entire mortgage process, start to finish,” Sparrow explained. This could make the broker route more desirable to you.
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