Faq's

Q. I’ve been dealing with my local branch for years and they always give me good service. Why should I work with a mortgage broker? answer...

Q. If banks pay mortgage brokers incentives, won’t you then just refer me to the bank that pays you the most generous finder’s fee? answer...

Q. How long until I know whether my application is approved by the lender? answer...

Q. I have had some credit problems in the past. Will this prevent me from securing a mortgage? answer...

Q. What does a mortgage broker do?
A. A mortgage broker is a trained, licensed, independent professional who will work with you to find the mortgage that best suits your needs. Rather than working for any one institution, your mortgage broker works for and with you. Many mortgage brokers began their careers working within major financial institutions, so they understand how these institutions work, and how to make them work for you. Your mortgage broker can help you find the lowest rates – up to ½% lower than the banks’ posted rates (for qualified applicants) – as well as flexible payment schedules and discharge options. Your broker can also help you find alternative financing options if you’re unable to secure financing through conventional institutions. Whatever your situation or circumstances, your mortgage broker can help you find financing that suits your lifestyle and your needs.
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Q. Why work with a mortgage broker?
A. To save time and money. Many people simply go to their local bank or trust company for financing. While this may be convenient, this option only allows you to choose from the mortgage rates, terms and products that particular institution is offering. These are often not the best rates, terms and products available in the market. You could conceivably shop around to every local financial institution yourself to find the best mortgage, but that can be time-consuming and confusing. Your mortgage broker has access to the rates, terms and conditions being offered by a wide range of institutions and can help you assess and compare the options and identify the best one for you.
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Q. Can you really save me money on my mortgage?
A. Absolutely. You can realize a significant savings over the life of your mortgage by choosing the option with the best rate, term, payment flexibility and pre-payment privileges to suit your needs. Most people know that the lower the rate, the less interest you’ll pay over the term of the mortgage. However, you can also save costs over the life of your mortgage by repaying it on weekly or bi-weekly basis, making periodic or annual pre-payments and shortening the amortization period. Not only can your mortgage broker secure lower rates than you could likely get from your local financial institution, but they can show you other ways to save money over the life of your mortgage.
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Q. I’ve been dealing with my local branch for years and they always give me good service. Why should I work with a mortgage broker?
A. When you go to your local bank branch, you’ll get the best mortgage rate that particular branch can offer. Your mortgage broker can get you the best company-wide rate, which can be more competitive. We can also get the best rates from other companies as well, so you can compare and make an educated choice. Furthermore, some lenders offer lower rates to mortgage brokers, since working with brokers helps them save fixed costs.
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Q. How much does hiring a Mortgage Broker cost?
A. In most cases, there is no cost to work with a mortgage broker. In an effort to gain a larger market share and reduce fixed salary costs, many financial institutions pay finders fees to mortgage brokers who refer business to them. This allows mortgage brokers to provide their services at no charge to you. In a few specialized cases, some fees may apply – however your broker will always let you know up front, so there will be no surprises later.
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Q. If banks pay mortgage brokers incentives, won’t you then just refer me to the bank that pays you the most generous finder’s fee?
A. Not at all. Incentives offered by banks are usually quite competitive, so there’s no advantage to us to recommend one lender over another to you. We work for you, and our focus is on finding you the best rates, terms and conditions, regardless of the lender.
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Q. What’s the difference between pre-qualifying and pre-approval?
A. Pre-qualification is a calculation that you can use to help you identify the price you can afford. Your mortgage broker can help you calculate the price that fits your budget by taking into account total income, total down payment, estimated property taxes, heating costs, condo fees if applicable and other monthly expenses. Pre-approval involves applying for and receiving advance approval from a lending institution so that the majority of the approval process is complete before you make an offer, and all that’s left to do at that point is to approve the property itself. Your broker will submit your application and credit information to your chosen lender. Once your application is approved, the lender will issue a pre-approval certificate quoting an interest rate, expiry date, maximum mortgage amount and any conditions. This helps you speed up the financing process and enables you to remove subjects more quickly once you’ve made an offer.
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Q. How long until I know whether my application is approved by the lender?
A. Generally speaking, your mortgage broker will know within 24 hours whether your application is approved.
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Q. How does a lender determine whether I qualify for a mortgage?
A. The bank or financial institution will consider family income, job stability, past credit history, net worth (assets minus liabilities), source of down payment, the amount of the mortgage, percentage of purchase price, and debt service ratios (how much total debt you have.) Many banks and financial institutions also offer mortgages specifically for self-employed people, those with only a minimal down payment, etc., and in those cases, they may take other factors into account as well.
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Q. What do you do with the information you collect from me?
A. Any information we collect from you is maintained in the strictest confidence, and is used only for the purposes of securing financing for you.
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Q. I have had some credit problems in the past. Will this prevent me from securing a mortgage?
A. Not necessarily. Mortgage terms and conditions are more flexible than ever, and you may be pleasantly surprised to learn that you qualify for conventional financing. If not, however, your mortgage broker will have access to private financing options, one of which may be right for you. Ask your broker for further information.
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