8 Reasons You May Need a Mortgage Broker Newmarket

Posted On Wednesday, 03 February 2021 20:59

If you’re thinking of acquiring a residential or commercial property on a mortgage, you may find the options overwhelming because there are just too many—or too few—to your liking. That’s why, in most cases, you’d need the assistance of a mortgage broker to properly link you with a trustworthy lender appropriate for your situation. 

A real estate agent and a mortgage broker are professionals who have similar and overlapping tasks, which confuses a lot of people. Simply put, a real estate agent assists property buyers and sellers find or sell a physical property, while a mortgage broker helps borrowers and buyers find a lender willing to work with them to purchase a property.     

If you’re eyeing to invest in the lucrative real estate markets in Newmarket, Canada, these are the most compelling reasons why you should seek the help of a mortgage broker:

1. You’re short on time

Searching for lenders and homes on mortgage can consume a great deal of time, effort, and cash.

Mortgage brokers can save you a great deal of time in the overall processing and documenting of papers related to the transaction. These professionals gather paperwork from the borrower and pass them to a mortgage lender for underwriting and approval purposes. Being familiar with how mortgages work, they would know the basic requirements for lenders based in different locations, including Newmarket.   

A mortgage broker is tasked with focusing on these things, taking the guesswork out of identifying the best possible loan that matches your needs and preferences. 

Besides loan application, a borrower will have to wait for approval, which takes a long while. With the help of a mortgage broker who has direct access to the bank, the borrower or property buyer’s waiting time is greatly reduced.    

2. You lack expertise

If you’re not an insider in the banking or financial services sector, you’re likely unfamiliar with how the lending industry works.  Mortage brokers, however, are completely adept with the ins and outs of the real estate sector’s loan and investments sub-sector, making your property purchase through mortgage a breeze. 

Mortgage brokers are typically aware of the recent movements and updates in home loans, seeing beyond just the interest rates. By knowing what you want, your current situation, and motivations, a mortgage broker will be able to match you perfectly with a lender. 

If you want access to the best mortgage brokers in Newmarket, click here to learn more.

3. You want to save on costs

In general, mortgage brokers are paid a commission of about 3% of the total loan amount, by the lender for every completed transaction. Borrowers typically don’t have to pay for them, although some do, as a ‘reward’ for saving them all the hassle that goes with loan application. Applying for a loan can entail a lot of costs on the borrower; such as origination fees, application fees, and appraisal fees. If your broker is really good, they can request the lender to waive some or all of these fees, saving you thousands of much-needed dollars. 

Brokers can assist you in getting a loan approval and get you the best deals, sometimes cutting your interest rates or getting a loan from lenders that you thought wouldn’t give you their time and attention if you submitted the loan application by yourself.   

In other words, mortgage brokers work for the borrower’s interests but get paid for doing it by the lenders. 

4. You can’t find the best deals on your own

When checking out possible banks to borrow from, whether online and in-person, you’ll be asked to fill up a form with your basic profile, which offers a generic assessment that can put you at a disadvantage, for instance, if your income is on the lower bracket.   

With the intervention of mortgage brokers, who have access to complicated software, your specific situation may be considered. The software used by brokers are wide-ranging and may present all loan products available in the market that fits to your situation perfectly. By taking time to discuss with you, the broker can assess your financial health, indicate the issues that may hinder loan approval, and work with you to get a more favorable, if not the best, deal regardless of the challenges.        

5. You don’t have access to lenders

Sure, there are various bank terms for specific types of mortgages. But, in general, a mortage broker can offer you the widest range of choices. As professionals who have access to several banks and with inside knowledge of these financial institutions, working with one can give you better access to all of the deals available in your area. 

Many individuals prefer to work with a mortgage broker regardless of their situation and location because mortgage brokers have access to lesser-known lenders most individuals wouldn’t think of approaching for a loan.

6. You have a low credit score

Whether applying for a credit card or a car and home loan, lenders check on the applicant’s credit scores before deciding to approve (or reject) request, and likewise decide how high of an interest rate to charge the borrower. As you may have guessed, those with good credit scores are at an advantage as they’re more likely to get approved and have the lowest mortgage rates.    

With the help of mortgage brokers, some lenders may offer to lend you money despite your low credit scores—however, you should expect to have a higher interest rate. Take note that lenders not only look at your credit scores when assessing your capacity to pay—they also look at other factors such as loan-to-value (LTV) and debt-to-income (DTI) ratios, to give you an idea of how lenders set their mortgage rates

7. You don’t know how to capitalize on your interests

Lenders such as banks are financial institutions, meaning they exist to make money. If you approach a bank, you’ll be assisted by a bank employee, who, no matter how much attention they provide, always have the lending company’s interest in mind.   

Mortgage brokers in Canada, including those in Newmarket, are required by law to have a fiduciary duty to the buyer. This means that the broker is mandated by the law not to put their interests above the client’s. A mortgage broker can and should alert the buyer of when they are offered one-sided deals that favor the other party. The broker, likewise, must handle all the transaction processes with transparency—that’s why disclosure papers are signed prior to the mortgage being funded by the lender. And, while the broker has the fiduciary duty to the borrower, they also have a duty of care and disclosure to the lender as they’re paid by the latter a commission for every completed transaction.   

8. You want long-term assistance

Besides helping you every step of the way and making your loan application a breeze, mortgage brokers are willing to help you out even after the mortgage loan is approved. In most cases, if you’ve developed good relations with your mortgage broker, they're more than willing to tip you off to better deals that may interest you. If you’re looking to invest in another property on mortgage or need refinancing, your broker is only a call away.

Recap

Seeking the assistance of a mortgage broker in completing property transactions can help you to save time and costs. These professionals have access to several loan institutions and can get you the best deals. In the end, working with an experienced mortgage broker can help you get the property of your dreams.      

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