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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?
What Does a Mortgage Broker Do?
They Review Your Financial Situation and Compare Lenders and Rates
Sometimes at the bank it may feel like you are just another customer. With a broker however they typically like to form more of a relationship with the client. They like to review your goals and needs more in depth. Also, they will ask you a series of questions to be sure they find you the best solution for your needs.
The best mortgage broker might not necessarily be the one who immediately offers you a rate without getting to know you, your situation or goals.
Ottawa Mortgage brokers can look to approve you for a mortgage in situations where you may have been declined by your bank. The decline may have been from a situation where you were not able to meet the lender’s guidelines.
Learn more: Ottawa Mortgage Brokers
Learn more: Six Less-Obvious Reasons Why You May Be Declined For a Mortgage
A mortgage broker can really shine in this situation. They have access to alternative and private lenders which are not available typically through your bank.
Learn more: Private Mortgage Ottawa
With your one application they are able to compare mortgages from a variety of different types of lenders and help discover the best mortgage for your needs.
A bank will only have access to their own mortgage so unfortunately you will only be able to explore one option with them.
If you do not shop around with a broker while looking for a mortgage, it is probably safe to say that you are missing out on other options and deals.
They Make the Application Process Easy
What does a mortgage broker do? Even if you have gotten a mortgage in the past, applying for a new mortgage can sometimes feel a little overwhelming and can be quite time-consuming.
Banks at times can lack in communication, have quite limited hours compared to a mortgages brokers in Ottawa and can make the documents process exhausting.
Ottawa mortgage brokers takes care of the entire process from the initial application to gathering your documents. Also, with negotiating rates at different banks and lenders, educating and guiding you through the process and being your one stop shop from start to finish.
Exploring options with the mortgage broker is completely free.
What Does a Mortgage Broker Do?
Why Use an Ottawa Mortgage Broker?
Mortgage broker‘s are true experts and professionals in the industry and solely work on mortgages. They have a great knowledge of the mortgage process and with that can make the process stress-free and easy for you.
What does a mortgage broker do? A mortgage broker in Ottawa can also caution you on the different negative fine print that can come with different lenders. For example, with a collateral mortgage.
Learn more: Collateral Mortgages
Also mortgage brokers can look to get you approved when you were otherwise declined by a bank. This may arise in situations such as with bad credit or self employment.
What does a mortgage broker do? Mortgage brokers work directly with the bank’s underwriting centres and managers and have a great relationship with the decision makers. They know who to call to get your application looked at quickly and to assure you get the best rates.
As a mortgage broker only gets paid if they are able to assist you with a mortgage, their only goal is to be sure that you are happy throughout the process. With that, it is within their best interest to get you the right mortgage for your needs.
A mortgage broker can also assist with a mortgage renewal and mortgage refinance. With that, they want to be sure that you always have a good experience now and in the future.
How Does a Mortgage Broker Get Paid?
When buying a home, your real estate agent is typically free to you and paid by the seller. Similar to this, your mortgage broker is free to you and paid by the lender.
A mortgage broker in Ottawa is paid a commission from the bank or lender.
Although they are paid by the bank, they are not a bank employee which means less overhead to the bank. Less cost to the bank means lowers rates for you.
A mortgage broker is only paid if you complete a mortgage with them. Therefore your needs are priority one. Unlike a salaried employee who is paid whether you are happy or not, or work with them or not. A mortgage broker wants to make sure you always have a favourable experience.
In general, a mortgage broker typically does not charge fees for assisting with traditional mortgages.
A fee generally will arise with non-traditional lending such as agricultural, commercial or private lending.
Learn more: Private Lender Mortgage Cheat-Sheet
Is There a Better Way to Apply For a Mortgage?
As the world moves more towards online banking, booking vacations online and ordering everything online. Working with a broker can fall into this more modern way of doing things.
Just like you can book your annual family trip online for free in minutes and save money with a company like Expedia. You can reach out to a broker and get the best mortgage rates for your needs quickly and for free. No need to visit the bank branch. No need to take time out of your evenings and weekends and no need for paper-based documents.
Can They Shop Around Every Lender in Canada?
What does a mortgage broker do? Whether you are buying your first home or are a seasoned homeowner, the process of shopping around can take quite a bit of time.
Each time you apply for a mortgage, a credit check is done and this uses up credit points. Having too many credit checks can reduce your score. Fortunately, a broker can do one credit check and with that can review your application at dozens of lenders.
A broker has access to many banks, credit unions, monoline lenders, trust companies and more.
Learn more: Monoline Lenders
There are a few banks however that do not deal with mortgage brokers.
You may find however that the banks that do not offer to their mortgages through a discounted channel generally have higher rates. Just like a company that only sells their products through their stores and not through online companies like Amazon.
As a mortgage broker can look to multiple lenders, they can present you with different lenders. Therefore offering you more options to meet your goals.
The more volume a broker or their brokerage does, typically the better access to larger rate discounts and faster turnaround times at lenders, they will have.
This means you can save more and get a response faster.
Are There Any Downsides To Using a Mortgage Broker?
One of the biggest advantages to using a mortgage broker is their expertise. Plus, their access to great rates at many lenders.
Each broker however will have their own amount of skills and experience. This experience in packaging and presenting your application to a lender can therefore vary from broker to broker. This can make the difference between an approval and a decline.
When talking to a potential mortgage broker it’s important to ask them how long they have been in the industry and the experience they have. If they just started there is a long road of learning ahead to know each lender’s policies and procedures amongst the dozens of lenders.
If choosing between an inexperienced mortgage broker and your bank branch, you may be better off with the bank if the representative there has more experience with mortgages.
It is quite rare, however some mortgage brokers may charge a fee if you leave them for another lender prior to closing or to assist you with a mortgage.
Some mortgage brokers may also not have access to as many lenders or discounts if they or their brokerage does smaller volumes. In this situation your bank branch may have similar rates.
The bottom line is an experienced mortgage broker should have access to the very best rates options and guidance for you.
How Do I Find The Best Mortgage Broker in Ottawa?
Speak to colleagues, friends and family to see if they have used a mortgage broker before and can recommend one.
Look online to see which mortgage brokers are well reviewed. Also which ones are accredited with the Better Business Bureau.
Learn more: Better Business Bureau