For most Canadians, mortgage brokers continue to be crucial part of the home purchase process. In a recent analysis, Vancouver-based DLC
accredited mortgage professional Geoff Lee offered some justifications as to why this remains so.
Familiarity with other industry players
Mortgage brokers have access to different lenders, giving consumers more chances to benefit from rates lower than those offered by banks. “They can also often get you a SHARPER rate at your own bank simply because of the high volume that they do with them,” Lee explained.
Easy access to relevant information
Among the most important numbers that would-be buyers look at is the credit score. “All lenders will look at [a] credit history and score first then they build a file around that. A mortgage broker can obtain [the] credit score in mere minutes,” Lee stated.
Brokers also help clients focus their searches. “You may think that more options lead to better rates, but in fact lenders will frown upon you having your credit score pulled multiple times. This is where the benefits of using a broker come into play,” Lee wrote. “They will pull your score ONE time only and use that to shop around with lenders for you.”
Understanding the essential volatility of the market
More than anyone else, mortgage brokers have knowledge of just how fickle the market can be, and it is this understanding that can help them establish firmer ground for their clients in terms of expectations.
“Rates might be low right now, but new rules and implications can change things when you are up for renewal. Understand that you MUST be able to carry your mortgage payment on at a higher rate if new laws are put in place,” Lee said.
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