How many lenders can you draw from and who are they?
There are over 50 lenders to draw from, far too many to list. Some very strong and solid mortgage companies that only mortgage broker/agents have access to. These companies deal only in quality mortgages which ensures clients can have a low rate with flexible terms.
What is your fee?
In most cases my fees are covered by the lender. There are some occasions where I will need to charge a fee but this does not happen often.
What should I know when shopping for a mortgage specialist?
Get a referral from a friend or someone you trust, if that option is not available look around for a broker with AMP behind their name. These agents are licensed and keep up with their educational requirements. They go a step further. Talk to a couple brokers before you commit to the relationship. Short or long term, your broker will be listening and reviewing your financial details.
I’ve been a loyal bank customer for years, why should I deal with a mortgage broker instead of my bank?
Mortgage Broker / Agents are not trying to take you away from your bank, we can even help you get a better deal from your own personal bank.
It’s about KNOWLEDGE, CONVENIENCE AND CHOICE!
Mortgage agents do not sell chequing accounts, GIC’s or RRSP’s they know mortgages! This is all they do. Cornerstone banks know they have your loyalty, they also know they don’t have to give you their time to listen to what your family needs are or give you their best rate. Even when they give you a discount its often not the same as the discount they give to the broker. Brokers also have access to more lenders and options then just one bank.
Is a mortgage broker used only for those people with a bad credit rating?
We definitely help those who have bruised their credit but the greater bulk of my clients are people who do not have the time or want to research. This is what I do everyday so my clients trust that I will give them the best mortgage possible that not only has a great rate and terms but meets their families goals.
Should I also shop around to get the best mortgage rate?
Why would you? You have just enlisted me to do that for you. If you like and trust your broker and they have been referred to you by a trusted friend. Let the broker do the worrying for you. You just sit back and relax!
What is the difference between fixed and variable rates?
Fixed rate – Is just that, it’s an interest rate that does not change over the course of the term eg: a 5.5% for 5 years means for 5 years your rate will be 5.5% at the end of your five years you will renew your mortgage for a rate that is available at that time.
A variable rate – works with the Bank of Canada. The Bank of Canada sets the overnight lending rate let’s say It’s 1 % (this is the rate they lend money to the banks) The banks / lenders then lend out the money at a 2% mark up. So prime would now be 3%.
Your mortgage rate is going to be set at the time you sign your contract so let’s say prime plus 0.80 bps your current rate would be 3.80%.
The biggest issue with the variable rate is you must be flexible and not adverse to change. With most mortgages your payment will change with prime adjustments. Eg. Prime goes up by 0.25% , the following month your payment will adjust to reflect the change as your new mortgage rate is 4.05%.
I hear the term "closing date" often, what exactly does that mean?
Closing date is the date you get the keys to your home.
How long can you lock in my pre-approved mortgage rate, months? Year?
Usually 120 days, this depends on the lender