4 Reasons A Mortgage Broker Is Great (And Why You Should Use One!)

4 Reasons A Mortgage Broker Is Great (And Why You Should Use One!)

Buying a home will most likely be one of the most significant investments you make, so you want to make sure that, when it comes to your mortgage, you’re getting the best possible outcome. Here are some reasons why going with a mortgage broker can save you time and money.

Mortgage Brokers are well worth it

Here are four reasons you should use a mortgage broker today:

1. Lower Rates

The first and best reason for working with a mortgage broker would be that they have first-hand knowledge of the best-rates available.

The best mortgage rate you can get is 2.64% for a five-year fixed-rate, while the best rate currently offered by a big bank for a five-year fixed rate is 3.09%.

Why not work alongside a broker and save money?

2. Better Accessibility

There are specific rates for mortgages that only a broker has access too. Your broker can mediate between you and a lender (an individual or a financial institution that makes funds available to you, with the agreement that the funds are repaid).

A lender can offer you a lower interest rate, which can save you thousands. Compared to bankers, mortgage brokers work on commission, or in some cases, a percentage of value on the loan, which ensures that they are going to fight to get you the best deal and in an efficient manner.

3. Customizable Lenders

No two people are the same, and some people have different needs when buying a home and acquiring a mortgage. A mortgage broker can find you a lender that can cater to your specific needs so that you can get the best value for your mortgage.

Not sure what kind of options there are when finding a mortgage? Here are some examples:

Open mortgage
Higher interest rate, but you’ll be able to put extra money towards it at any time. You can also pay it off before the end of your term.

Closed mortgage
Lower interest rate, but the money you can put toward the mortgage is limited.

Short-term mortgage
Great if you expect a decrease in interest rates.

Fixed interest rate mortgage
Tend to be higher when it comes to interest rates, but the number does not fluctuate.

4. On Your Side

You can think of a mortgage broker as an ally; it’s their business to protect and ensure you make the best choice available to you. The challenge isn’t finding a mortgage but instead safeguarding yourself and your investment from those who are not legit mortgage lenders. A mortgage broker can add a sense of security as they will negotiate on your behalf by:

  • Scanning the marketplace for products with various lenders
  • Presenting the lowest rate on the market
  • Advising which lender will consider your case and which will not
  • Finding exclusive deals not available on the open market

Research is Key

Just like finding the perfect home, you want to find the ideal mortgage broker for you. Here are a few questions that you can ask your local broker to narrow down your search:

  • What are your qualifications?
  • How many years of experience do you have in this industry?
  • What kind of relationship do they have with their lenders?

We want you to find the perfect mortgage broker for your situation, so take your time, do your research, and ask lots of questions. Doing this will ensure you find the ideal match.

We’re here to help, so if you have questions or need more information, contact us today!

With these tips, you should be off to a strong start when looking for and getting the expert advice you need from a mortgage broker. The next part will be brokering a deal that suits your budget. Check out this article for more useful tips and tricks on “How to save thousands of dollars in interest on your mortgage.”