Mortgages are often essential to help many buyers realize their dream of home ownership. However, the mortgage process can be complicated to navigate for many people. A mortgage broker can be a vital guide during the entire mortgage journey, from pre-approval to deal closing. However, there are several misconceptions that can prevent you from benefiting from the services of a broker. Mortgage Centre Canada – BP Financial addresses some of these myths below:
MYTH 1: MORTGAGE BROKERS CHARGE FEES.
In fact, for most qualified borrowers, mortgage brokers offer their services for no cost to the client (“free!”) The broker generally receives a commission from the lender, once the mortgage closes. This is sometimes called a “finder’s fee”, and is usually a percentage of the mortgage amount (around 1 %.) This rate can vary based on the mortgage rate, term length, and complexity of the mortgage itself. A broker may also earn volume bonuses and/or trailer fees paid over the mortgage term. Regardless of these details, the client usually does not have to pay the broker at any point! A good broker will ensure the client and broker will sign a Disclosure to Borrower document that will clearly outline these terms.
There are situations where a broker may have to secure funding for a complicated, high-risk mortgage that may require the client to pay certain fees. This should also be captured in a transparent document, and be mutually agreed upon by the client and broker.
BP Financial would be happy to explain this process to you in greater detail if you continue to receive conflicting messages about how brokers are remunerated.
MYTH 2: ALL MORTGAGE BROKERS CAN GET THE SAME FINANCING (MORTGAGE AMOUNT AND RATES.)
This is a significant misconception in the mortgage industry. The general consumer believes all lenders have similar policies, rates, and programs (“all banks are the same.”) This prevents many clients from exploring other options. In fact, clients may be surprised at the financing they are offered between different lenders, based on the institution’s policies; they may not even be eligible for a mortgage at one institution compared to the next! An experienced broker will know what lenders will be best suited to meet a client’s needs. They will save you time and money by finding you the best solution, at the lowest rate, based on your unique situation. In addition, high-performing brokers that do extensive business with credible lenders will often be given promotions and offers by the lender specifically for that broker’s clients. Because of this, brokers can get sometimes get a larger mortgage amount and/or lower mortgage rates for the client by representing them to the lender (you would not get these same perks going to the same lender yourself!) BP Financial is the high-performing team with strong lender relationships that you need!
MYTH 3: I DON’T NEED A MORTGAGE BROKER AS MY BANK WILL GIVE ME THE BEST MORTGAGE SOLUTION.
Many people believe they will get the best terms and conditions on a mortgage from their bank, simply for being a loyal customer. Unfortunately, many banks will not offer existing clients the best rate, as they are aware clients often prefer to stay with their existing institution due to convenience. In addition, representatives at your existing bank may not know of products and policies at other lenders that are better suited to your situation (or will not share them with you in order to keep your business!) Remember, a broker acts on your behalf (and not the lender). You can feel comforted that a good broker has no bias or conflict of interest when trying to find you the best mortgage solution! A broker will also help you organize your documents and requirements from any lender, so you do not have to feel overwhelmed if your mortgage will be with another institution. Sometimes a broker can even get you better financing at your own bank!
Therefore, you have nothing to lose by engaging a broker on your mortgage journey. Mortgage Centre Canada – BP Financial offers you experience, expertise, and excellent customer care. Our strong reputation and relationships with many different lenders provide clients with the most comprehensive mortgage options.
We offer a full range of residential and commercial mortgage services to clients across the Greater Toronto Area, including Mississauga, Woodbridge, Vaughan, Brampton, and Markham, as well as Hamilton, Oshawa, and surrounding areas.
For a complete list of our services, please click here. If you have any questions about Mortgage Centre Canada – BP Financial, or about mortgages in general, we’d love to hear from you! Please contact us here.
