When it is time to apply for a mortgage, you’ve got a few options. You can go to your bank or credit union to see what they can offer. You can shop a few various lenders yourself. Or you can work with a mortgage broker.
One of the reasons why so many people choose to work with a mortgage broker is the fact that in many cases, a mortgage broker can get them a better deal.
How can a mortgage broker get you a better deal?
1. Mortgage brokers work with multiple lenders.
When you go to a mortgage broker for a mortgage, they will assess your situation and then shop all the appropriate lenders in their contacts. For you do to this yourself would be incredibly time-consuming and also potentially damaging to your credit since each lender would run a credit check (as opposed to a mortgage broker who only needs to run one credit check before they shop multiple lenders). Because there is competition for your business amongst lenders, a mortgage broker can almost always get you a better deal.
2. Mortgage brokers have negotiating power.
Say you really want to work with your own financial institution. Even then, a mortgage broker can often get you a better rate. Mortgage brokers work with all the major banks and credit unions. And they can usually get you a better rate than what that lender has listed.
3. Mortgage brokers can help you choose the best type of mortgage for you.
Most Canadians choose to go with a five-year fixed mortgage. But is this really the best option for you? If you work in a position where your income fluctuations, you might do better with a variable rate. If you are only planning on living in your home for a short time, then a 1 or 2 year mortgage might be better for you. A mortgage broker can help you choose the best mortgage for your situation making it less likely that you will have to break your mortgage before the end of the term and get stuck paying penalties.
If you really want to get the best possible deal on a mortgage, then work with a mortgage broker is invaluable.
To get started on your mortgage application, contact AKAL Mortgages today to speak with one of our brokers.
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