What is a mortgage broker, exactly?
Their function is comparable to that of an insurance broker. A financial agent who works with one banking company is hired by the bank and is familiar with many of the bank’s mortgage products. As a result, when you go to the bank for a mortgage, the agent assesses your case and selects the best deal their bank has to sell based on your requirements.
Save time: Many people want to look around for their own mortgage by going to one of the five or six big Canadian discount banks, which can take a long time. A mortgage broker will meet you wherever it is most convenient for you and will shop your mortgage for you, saving you time and money.Visit Derwent Finance Loan Experts for more details.
Credit Score: When comparing banks, one of the most significant factors for Canadians to remember is their credit score. A credit request is made each time you go to a bank to qualify for a mortgage; so many inquiries will lower your credit score. A mortgage broker only requests one credit question, which is then forwarded to the banks with which they are comparing offers.
Save Money: Many people have the misconception that using a mortgage broker is costly. In reality, most brokers do not charge commissions because they are compensated by the banks for taking them in. The best thing is that you will get impartial mortgage advice at no cost to you.
Best Prices: Using a mortgage broker ensures that you can get the best rates available. Since independent mortgage brokers focus on repeat customers, they do not play games and will find their clients the best rates possible. Furthermore, many banks would provide exclusive deals only open to mortgage lenders for their customers as an incentive for getting them millions of dollars in revenue per year.
A lower interest rate on your home loan would almost certainly result in lower monthly costs and more funds goes toward principal rather than interest.
Because of this annual savings, the homeowner is willing to pay down their mortgage quicker or build up equity in their property, which they will leverage in the future whenever they need to fund anything large. For instance, if you need to fund a big home renovation, you can use the equity of your home to pay for it by obtaining a home equity loan or line of credit.
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