If you haven’t had a chance to look at it yet, Mortgage Professionals Canada released its new television commercial about why you should choose a mortgage broker this week.
At first blush, you might think that the commercial is stating some obvious points about life stages, but it is in this simplicity that lies the true meaning of being a mortgage broker.
Having a mortgage broker is probably one of the best decisions a Canadian can make. A broker is licensed and has access to hundreds of lenders to find the best solutions for your home financing needs both now and in the future.
Brokers value your business. They value you returning to them, they pride themselves on sound advice based on your life stages and your family goals, needs and changes. Think of them as a home financing advisor in much the same way you might, and should have a financial advisor and/or insurance advisor.
Why not your bank?
The beautiful thing is, no one is saying don’t deal with your bank. Banks have their place, and have the ability to accomplish some of your key goals. Where brokers differentiate from banks is in choice and advice. A mortgage broker must hold a license to sell mortgages, a bank rep does not.
A mortgage broker has one focus and one focus only; how to use your home to help you reach your goals, whether that is buying, selling, refinancing or investing in property. A mortgage broker sees all of the angles, the obstacles and the curves and adjusts to them. A bank has many spinning plates and a tremendous amount of balls in the air.
But Isn’t my bank’s interest rate better?
Maybe….maybe not. Aren’t mortgages fun?
Your bank rate may at times look better on paper, but it is within that paper where the devil may be lurking in the details. From higher penalties, to how rates are calculated, there may be more than meets the eye in your “rate special” you have been offered.
Here’s an idea: Get that rate offer from your bank and then have it reviewed by a mortgage broker. It costs nothing, and their (the broker) license and training is designed to spot some of these details that may not have been clearly presented to you at the branch. The same goes for your renewal offer, have it reviewed by a broker.
Brokers have access to all kinds of lenders. They too, can get you the lowest rate, but if you don’t qualify for that rate, a broker can and will find you another solution from alternative lenders. Alternative lenders’ rates are only slightly higher in many cases and still can get you into that home or pay off that debt and if that doesn’t work, there are private lenders that your broker has access to that can also help.
No, these are not loan sharks.
Private lenders are now more popular than ever and highly detailed and ethical. They also need to be licensed to lend, unless part of an already existing mortgage brokerage, in which case they will have their brokerage license.
Private lenders also include mortgage investment corporations, or “MIC’s” who are actual investment and lending companies, and provide ways for individual investors to invest in the real estate market. Their rates may be slightly higher as well but they are not as strictly regulated when it comes to things like your income to debt ratios and may be able to help you achieve what you need now and then help you leave and move to prime lending in one to two years.
Wait, did you say a private lender doesn’t want to keep my business?
While they appreciate your business, private lenders celebrate graduating you to the next level of lender/rates. Many of the best private lenders work with your broker on an exit strategy of one to two years to help you get into what is referred to as “prime” lending or lower rates and longer terms.
Bet you didn’t know all of this, right?
That is precisely what the Mortgage Professionals Canada commercial is designed to do, to start the conversation about using a mortgage broker and it is an important conversation all Canadian homeowners and future homeowners should be considering. Advice and going down the right home financing path could potentially save you thousands of dollars in human error cost, avoiding wrong products at the wrong times with difficult to manage terms, and avoided simply because the person you are talking to, the broker, actually listens, takes note and plans for and with you.
But Mortgage Magnates is a mortgage broker, so of course you are saying this
No, we are not a mortgage broker. We facilitate the business and client facing side of training mortgage brokers to be at their very best when they are with you.
We give them access to their peers in new ways so they can learn best practices from the best in the industry and learn from each other. This is all designed to give you, the client, the best experience possible with a mortgage broker. From Halifax to Vancouver brokers hear from and learn from each other through our platform. The better they get, the more you benefit from your mortgage broker.
So as you watch the MPC commercial, think about your own life goals, life moments, life milestones and then contact a mortgage broker to discuss how your home can help you get there.
You can find a broker at: FindMeABroker.ca