If you’re a first time home buyer, you may not know that you have options for loans! You’re not just dependent on a bank to give you the best deal, and depending on the size of your mortgage a mortgage broker will help you get the best rate for a steal of a deal. One thing you need to know is that a Canadian mortgage broker is the best option for first time home buyers; you’ll be able to talk with them face to face and ask questions you may have about the process.
Someone You Can Talk to
Banks are notorious for not picking up the phone when customers call, and if you have a question about interest rates you may be out of luck. Loan officers are over worked and underpaid, often are just trying to meet a quota. Your goals are not their goals, and they’re trying to maximise the profit for the bank not the benefits to you. With an experienced mortgage broker, you’ll be able to speak with someone on the phone or face to face, ask how the process works and really understand what you’re signing up for.
Get Better Rates
If you’re getting a $250,000 mortgage at 4%, you’ll pay $10,000 a year in interest. If you get a 3% interest loan for instead, you’ll only pay $7500 a year. Over a 15 year period you’ll save almost $38,000 in interest, so those little percentage points make a big difference! There are many different mortgage brokers on the market (especially online), but it’s best to go with a Toronto mortgage broker who has the relationships with the lenders to get you the better deal.
Someone Who Works for You
Since they’re hired by you and only paid when the transaction is completed, you’ll be able to get a second mortgage or a first mortgage to buy your dream home or pay down your debts. They’ll be able to help you know how much money you have to spend on a home and get prequalified before you even start shopping for a new home. You can save yourself a lot of heartache when the bidding wars begin when you know what your true budget is before you start looking at homes that are just too expensive.
What a Mortgage Broker Actually Does
When you want to buy a home, refinance your current mortgage or take on a second mortgage, a mortgage broker will help you get it. A mortgage broker is an independent agent that works for you, and is typically paid after the deal is complete. They’ll give you a wider variety of choices in different lenders and interest rates, so you usually will get a better deal. Depending on the size of your mortgage, the savings will be different.
So now you know how mortgage brokers help first time home buyers get the best deal for their money; they provide a better experience and more attention than a traditional loan officer.