When shopping for a mortgage many home owners and home buyers tend to make use of the services of a mortgage broker in Canada who will be able to assist them in getting the rates that will suit them best. Just like anything else, there are both advantages and disadvantages that you may experience when you decide to hire the services of a mortgage broker.
- Mortgage brokers in Canada may have more access
Lenders tend to work exclusively with mortgage brokers so that they are able to bring the best clients to them. They consider brokers to be gatekeepers who they work with so that they are able to ensure that they are able to get the right clients. As a borrower, you may not really be able to call a lender directly so as to get a mortgage. You may need to seek the services of a mortgage broker. Also, a good broker may be able to get a good rate from a lender due to the large volume of business that is generated. This may be a different scenario if you were to get the loan or mortgage on your own.
- Saves you a lot of legwork
Since mortgage brokers are in contact with different lenders, it is easy for them to get a hold of them. A broker may also be in a position to keep you away from those lenders who only like to take advantage of their clients or ones who do not really offer good deals. With that in mind, it is advisable that you make sure that you do your research properly before you decide to hire a broker.
- You are able to save on some fees
When it comes to taking in a new , there are fees that are normally involved. These fees may include the application fees, the origination fees as well as the appraisal fee. In some cases, a good broker may be able to get a lender to waive some of these fees which may end up saving you a lot of money.
- Mortgage brokers do not really guarantee an estimate for you
When a broker comes with an offer from a lender, they normally describe it as a good faith estimate. This is because the broker may believe that this is what the final deal is going to contain. However, in some cases, this is not what happens.
- The interest rate of the broker may not be in line with yours
The main goal of hiring a Toronto mortgage broker Sherwood is so that you can be able to get the best deals on mortgages ones that have low fees and are affordable. The broker is normally paid a certain amount for bringing in a client to the lender. Sometimes, the broker may look at their interests and not yours.