What Does a Mortgage Broker Do?

What does a mortgage broker do? When applying for a mortgage, an Ottawa mortgage broker acts as the middle person between the lender and you. They review your goals and needs and compare different mortgage products from multiple lenders on your behalf. They assist with the application process all the way to the closing date. Plus they are there to assist after closing as well. There are a lot of differences between a great Ottawa mortgage broker and a less than favourable one. This article will help answer the questions, what does a mortgage broker do?

How Does a Mortgage Broker Get Paid?

A mortgage brokers role may be new to some. With that, some questions may be on your mind like, ‘how does a mortgage broker get paid?’ and ‘what does a mortgage broker do?’. Here is some information to help answer these questions.

How Do I Get the Best Mortgage Rates in Ottawa?

Knowing if you are getting the best mortgage rate is hard. The challenge is that there are so many banks, lenders and websites to compare. Here is some information to help you get the best interest rates for mortgages in Ottawa.

What is a fixed rate mortgage?

A fixed rate is there to protect you against future increases in interest rates. By locking in the rate, if interest rate‘s go up, you are protected. However, if interest rates go down during the term you will have to wait till the end of the term until you can take advantage of the lowers rates. The reason for this is typically a lender will charge a penalty to break the mortgage during the term. Learn more: The most common reasons people break a mortgage

How much down payment do I need to buy a house?

How much down payment do I need to buy a house? About 10 years ago you could buy a property with no down payment. With this, you could get a mortgage that was 100% of the value of property. Mortgage guidelines however have since become more rigid and most banks and lenders have reduced the loan to value that they are able to lend. How much down payment do I need to buy a house? The answer to this depends on a few things.

How much mortgage can I afford?

When looking to buy a home and get a mortgage, an important first step is to answer the important question of, how much mortgage can I afford? Some people want to purchase as much of a home as their pre approval limit will allow without going over their comfort level or having stress with cash flow.

What is a mortgage pre approval?

During a pre approval review, a lender reviews your finances to determine if you can afford a home and if so what is the maximum price of a home you can buy. A pre approval helps you determine if there is a strong possibility that you will be approved for a mortgage once you make an offer on a home.

What is a Collateral Mortgage?

In 2015, CBC Marketplace aired a show about collateral mortgages. In this show, they highlighted that TD Canada Trust only offers a collateral mortgage option. Also that they unfortunately do not proactively provide clients with enough information on the downside of these mortgages.

Can I get a mortgage with bad credit?

There may come a time when you have bad credit. This may be due to financial challenges that are out of your immediate control such as by co signing for someone that doesn’t make their payments on time. Or perhaps there have been some credit challenges from a break up when you had shared credit. Fortunately, having bad credit does not limit you from owning a home. There are options to get a bad credit mortgage in Ottawa.

What is a private mortgage?

Let’s look at what a private lender mortgage is, the type of mortgages that private lenders offer and what are some of the benefits and downsides to these mortgages.

How Do I Find the Best Mortgage Broker in Ottawa?

A mortgage will probably be one of the largest financial obligations you will have. As there are so many banks and lenders available with different options at each bank and lender, it can be tricky to know which one is the right fit for you. The best mortgage broker in Ottawa can help you with the complex task of finding the best mortgage for your needs. If you are interested in finding the best mortgage broker in Ottawa to assist with getting your mortgage, here are some great tips to follow.

What Do Mortgage Brokers in Ottawa Do?

There are many mortgage brokers in Ottawa to choose from. Finding the right one for you may seem like an overwhelming task. Also, if you are used to dealing directly with your bank, adding another person to the process may seem like an unnecessary step. This article is here to assist with understanding what Ottawa mortgage brokers do and how they can help you. It is designed to alleviate the stress that may be involved if considering to work with one. The information in this article can benefit anyone however focuses on first time home buyers. After reading this, you will have a better understanding of what mortgage brokers do and don’t do. Also, how mortgage brokers compare versus banks.

What Are the Best Mortgage Rates in Ottawa?

Compare some of the best mortgage rates in Ottawa and Ontario from a large range of Canadian lenders. Contact me today to get expert guidance and to see if I can negotiate you a lower mortgage rate.

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What is required

1) One pay stub

Why is this needed:

- pay stubs are used to show the lender your year to date income total, that your are currently being paid, your income is consistent with each pay and that there are source deductions.

If you are unsure if you are receiving acting pay, you can tell if your pay stub notes 'Acting Pay'.

Click here to see a sample of a pay stub noting Acting Pay.

2) Acting Pay letter

If you are receiving Acting Pay the lender will require a letter from your employer confirming your regular annual salary and when your acting pay ends.

Click here to see a sample substantive letter of employment.

Caution

1) Verbal confirmation with employer

Lenders may call your employer to do a verbal confirmation with employer.

Why is this needed:

- Many lenders will call the employer from your employer letter to confirm the details of the letter
- This call will usually take place some time prior to your closing date
- It is important that the income letter has the most convenient contact information for the person who provided it
- It is crucial that they employer is able to confirm the details of the letter of employment and that you are not on probation as any discrepancies will affect your mortgage approval

What you must know

- income documents will only be accepted if they are dated within the last 30 days
- lenders are typically not able to use income from an applicant on probation

DOES IT PASS THE TEST OR WILL IT BE REJECTED?

Is the date on my past stub within the last 30 days?
Is the date on my letter of employment within the last 30 days?
Is my letter of employment on letterhead?
Does my letter of employment have a contact name and phone number on it?

If you answered YES to all of the above, please send the document
If you answered NO to any of the above, the document will not be accepted by the lender

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Click here to return to the refinance checklist

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About Andrew Thake

Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.

Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.

Why not make your mortgage experience a comfortable one?