Investors are increasingly prepared to go it alone in this slower market where even the big banks are quick to whip out low rates to compete. But there are remain key reasons for using mortgage brokers. WhichMortgage.ca outlines those considerations and explains why savvy investors continue to rely on brokers.
Mortgage brokers keep up-to-date with the latest product offerings from lenders and have intimate knowledge of various features and options, especially for investors often facing business-for-self restrictions and the intractable “Four-door Rule.”
6 reasons to use a broker
1. Choice: If you go direct to your bank, you will only be offered products from that financial institution. Mortgage brokers have relationships with several different lenders and are knowledgeable across each lender’s range of products.
2. Works for you: As small business owners, word-of-mouth makes or breaks mortgage brokers. Hence they are motivated to act in the clients’ best interests.
3. Skilled negotiators: Mortgage brokers’ skill and experience, combined with their relationships with lenders, help them negotiate rates that are often better than what borrowers could achieve on their own. That remains true even in this competitive environment.
4. Goal-orientated: Are you looking for the cheapest rate? Are you interested in paying off your loan sooner? Are you planning on buying another investment property? A mortgage broker will interview you to find out what you want out of your home loan and work to find the best product to suit your needs and home ownership goals.
5. Paperwork: Mortgage brokers help their clients complete and submit the mortgage application, as well as gather the documentation required by the lender.
6. Read the fine print: After you’ve received your loan approval, the mortgage broker can help you understand the document and conditions of the contract. As well, the broker can walk you through the next steps leading up to the closing of the mortgage transaction.
Source: WM, whichmortgage.ca