Few people have the luxury of paying cash when they buy a home. Traditionally, most people went to their bank to apply for a mortgage. However, in the last 20 years or so, a burgeoning mortgage brokerage industry has developed, giving home buyers an alternative to banks.
If you’ve used a mortgage broker in the past to purchase Calgary real estate, you’re probably already well aware of the ins and outs of mortgage shopping and using a mortgage broker. If mortgage brokers are new to you, here’s some valuable information that will make it easier for you to decide if you want to go to your bank or a mortgage broker when it’s time to borrow money to buy a home.
You can go to your bank, or several banks to look for the best mortgage terms. The mortgage industry is very competitive and lenders are eager to lend money to qualified home buyers. If you like bargaining, you might be able to negotiate a lower rate at your bank, especially if you’ve been with them for a while and they know you. If you have time and the inclination, you can go to several banks or credit unions to see which one can give you the best rate.
If you don’t enjoy the thrill of the hunt but you still want the best mortgage rate possible, you might be better off going with a mortgage broker. A broker does the legwork for you. They have access to dozens of lenders and will shop for the best rate and terms for you. Contrary to what a lot of people think, you don’t pay any fees to a mortgage broker – their fees are paid by the lenders.
Mortgage brokers can also be a very good option for people who banks are reluctant to lend money to. For example, if you’re self-employed, have a tarnished credit history, or are considering buying a small condo, you might have trouble getting a mortgage. Most mortgage brokers have access to lenders who specialize in lending money in just these sticky situations.
By Patrick Murray Join me on Google+