Whether you are shopping around for your very first mortgage or whether your mortgage is up for renewal, there are no shortages of products and lenders out there for you to consider.
But how do you go about finding the best mortgage lender? Well, in general you’ve got three options. You can go to your bank. You can go to a mortgage broker. Or you can try the DIY approach.
In this article, we will examine each of those options.
Banks
Perhaps the biggest advantage of going to your bank, is that it is an institution that you are familiar with. You’ve already got a chequing or savings account there. And perhaps you also have other products there such as a car loan or an investment account.
Let’s face it. Going to the bank is just plain convenient.
But convenience can be expensive. Without shopping around, you’ll have no idea of whether you’re getting the best rate – and you could be leaving thousands of dollars on the table over the term of your mortgage.
Mortgage Brokers
A mortgage broker is someone who will work on your behalf, comparing the rates and terms of different mortgages. Also, since mortgage brokers have well established relationships with dozens of lenders, they can often secure better rates than if you were to call those same lenders yourself.
Mortgage brokers can also offer more options to people who might have difficulty getting a loan through a traditional lender. This includes people who are self-employed, new to Canada, or who have little or poor credit.
DIY
Some people just love to do things on their own. And in the age of the Internet, it has never been easier to compare different mortgage rates on your own through a variety of mortgage rate comparison sites.
These sites however do have some drawbacks that you need to be aware of.
People often assume that the mortgage with the lowest rate is the best one for them – but this is not necessarily the case. It’s important to take a look at the terms in order to see if the mortgage will meet your needs.
For example, a mortgage may have a lower interest rate, but also come with very strict penalties. Or it may have an amortization period that is not ideal for your situation.
Conclusion
When it comes to finding the best mortgage for you, your best option is usually to contact a qualified mortgage broker. This will give you access to the widest variety of lenders and allow you to have an expert on hand to explain the terms and help you secure the mortgage contract that is most suited to your needs.
If you would like to work with a professional mortgage broker to help you find the mortgage lender that is right for you contact Akal Mortgages today.
When we say YES! We stand behind our promise.®™
