Mortgages 101: Top Reasons to Work With a Mortgage Broker

Buying a home includes several steps, procedures, and third parties to facilitate a successful deal with minimal costs. Back in the day, it was as simple as finding a property you liked, going to the bank to secure a mortgage, and signing some paper before a prompt move-in day. These days, purchasing real estate can be time-consuming, costly, and possibly confusing.

For many buyers, holding a mortgage can seem financially exhausting, especially amongst high-interest rates and Toronto’s exorbitant home prices. However, employing an experienced mortgage broker can lighten the load of your financing situation as they connect buyers with the best lender for their specific case.

While Mortgage Brokers are highly influential players in the game of property investing, they are often overlooked or deemed unnecessary in the home buying process. However, in spite of buyer hesitations, real estate experts greatly recommend working alongside a competent mortgage agent to secure the best rates, speed up the process, and manage your fees.

Here are 3 reasons to work with a mortgage agent when buying property in Toronto and the GTA.

1.     You’re Working with an Expert

When it comes to property investing, many buyers assume that sticking with their bank of choice is the best and easiest option for financing their mortgage. As a result, these buyers will forgo looking at rates from other lenders, assuming they’d be fairly the same across the board.

Alternatively, buyers who employ a mortgage broker are diligently working alongside an expert interested in finding the best mortgage option for their needs. Mortgage agents have access to several different lenders, and in some cases, they can get you a lower mortgage rate with your current lender.

Mortgage brokers work to understand the context of their client’s financial situation to ensure that they use all available resources and knowledge to get the best deal possible. Working with a mortgage broker not only gives you peace of mind that you’re getting the smartest deal and saving the most money, but it also reassures you that you haven’t missed any steps or opportunities in the process.

2.     They Make it Easy

Mortgage brokers work hard. They take on a lot of responsibility to efficiently match their clients with the best lender, rates, and savings.

Mortgage brokers give you, the buyer and borrower, access to multiple lenders. They apply to lenders for you, thus protecting your credit score from the toll of several personal application submissions. In addition, they negotiate terms to get you the lowest rate and manage many of your fees to ensure that you are paying the lowest possible amount for transactions involved in the mortgage-buying process.

Working with a mortgage broker not only offloads the stress of comparing lenders, applying for loans, and negotiating terms, but it is also free! The lenders pay mortgage brokers and therefore incur no extra fees from their clients. 

3.     They Come with Connections

Lastly, mortgage brokers are connected to several different lenders, such as credit unions, private lenders, major banks, and trust companies. They compare lenders and rates to match you with the best lender for your specific situation.  

Since mortgage brokers develop relationships with lenders over time, they can initiate multiple discounts. For example, many mortgage brokers receive volume discounts from major lenders, which gives you a lower rate that you otherwise would not receive when negotiating for yourself. In some cases, brokers can negotiate a lower rate from the bank that their clients initially planned on working with. Mortgage brokers may also get lenders to waive certain fees, such as application fees and appraisal fees, which can save you up to thousands of dollars.  

Connecting with a mortgage broker could save you thousands of dollars. Even a 0.1% decrease in your mortgage rate can save you money, and mortgage brokers are keen on ensuring that their clients are paired with the best lender and lowest rate possible. In addition, mortgage brokers are free to work with, provide expert insight, manage the mortgaging process by saving time and money for their clients, and come with beneficial connections.  

Best practices for buyers looking to work with a mortgage broker include scoping out the industry to find the best broker for your needs. Not every broker will perfectly match your personal goals, but the right broker will understand your financial situation and work towards a rate and plan that fits your circumstances.

Interested in connecting with a mortgage broker? Ready to find the best rate for your mortgaging process? Click the button below to schedule a call with our mortgage broker and begin saving money today!