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by Denise Lewis
When you own your own home, you will undoubtedly have a mortgage that is held by some lender. You are required to make a monthly payment over a set period of time during the term of the mortgage. Once that term is up, and the mortgage still has a balance owing, you will need to renew your mortgage. Often we just sign on the dotted line of the renewal and continue on with the existing lender for the next term. That may not be your best option. You might want to consider talking with a Mortgage Broker.
We had a discussion with a licensed Mortgage Broker in Red Deer and want to pass a bit of information on to you. This information could save you thousands of dollars if you choose to pay attention. So we hope you do!
Why contact a Mortgage Broker?
Unless you are incredibly knowledgeable about all the ins and outs of mortgage lending and the documentation that supports these loans, you may be getting into some muddy water. A Mortgage Broker understands the technical components to a mortgage loan. They understand exactly how any conditions or terms apply to the borrower. They will analyse the terms of the agreement and advise you of your responsibilities outlined in them. That ensures you are well aware of all clauses and conditions prior to agreeing to the terms of the mortgage loan.
Access to Rates
One of the largest benefits to working with a Mortgage Broker is that you will have extensive access to the best rates for mortgages. A Mortgage Broker has contacts with many different lenders and lending institutions at their disposal. This means that you will have someone who can seek out the best rate on your behalf. And often, when searching for best rates yourself, you may not know of these options or lending choices. Finding the ideal mortgage with the best rate will save you thousands of dollars on your payments over the term.
Free Service to Borrower
Mortgage Brokers do not charge you for their service. They will brokerage your lending opportunity out to different lenders. When the lenders “bid” with offering a rate for the mortgage, they are indicating interest in obtaining that mortgage loan from the broker. The Mortgage Broker is then paid a commission for the loan from the lender or lending company. These lenders can get very competitive with one another. This will create an opportunity for you, as the borrower, to take advantage of some significant lower rates for the term. Again, saving you money in the long haul.
What can you do now? You already have a mortgage with a bank.
You can still bring on a Mortgage Broker to analyse your current rate and terms. They can see if there is an opportunity for you to move the mortgage out to a different lender. If this isn’t beneficial to you at this time, a Mortgage Broker can work for you at the time of renewal. They can start their search for better rates prior to your renewal date and make moving the mortgage away from the current lender easy. You are never locked down to one lender. You have choices that are available. And a Mortgage Broker is capable of identifying those opportunities for you to save money.
Always remember that a Mortgage Broker works on your behalf. Not the Banks or other lending companies. They have your interest at heart and want to provide you with exceptional service. It is just the best choice to work with a Mortgage Broker to secure financing you need for your home.