Buying your own home at any stage in your life will be one of the biggest investments that you are going to make. But before you actually own the house there is a lot of research and paperwork that you’ll be going to deal with, this also includes saving money to make this biggest investment possible.

According to survey, almost 81% people in Canada avail the services of a mortgage professional at some point in their life. A mortgage broker acts a mutual link between you and your lender. It is the duty of a mortgage broker to negotiate for best suitable rates as per their client’s demands, and they work with various lenders in order to provide multiple financing options to its customers.

Here are some reasons why you should or should not use a mortgage broker.

1. Services of a Mortgage Broker

Pros:

It should be kept in mind that you will pay your mortgage broker only when your loan will be approved and signed. Their assistance will cost you nothing if your loan doesn’t get approved.

Cons:

Brokers usually work on commission paid by lending institutions, and they don’t work just for you.

2. Mortgage Broker Choose their Clients

Pros:

If you have poor credit score or low monthly income, your broker can negotiate better rates on your behalf than if you approach the lending company on your own.

Cons:

If you are not financially stable, it’ll be difficult for you to buy a home whether or not you get the mortgage. Your broker can guide in right way as per your condition.

3. Time Saving Option

Pros:

Mortgage brokers will take care of all the paper work and legal formalities on your behalf.  They’ll negotiate for best suitable rates and will take care of your finances at every point during the mortgage terms.

Cons:

Hiring a mortgage broker to deal with all the legal work on your behalf can be time consuming; it is also a fact that some brokers compare the rates from only a few lenders. If you want to make sure that you are getting the best suitable rates you have to do the research on your own. Today it has become a lot easier to compare the rates online so you can easily compare and negotiate for rates.

In order to choose the right mortgage plan, it is important for you to have some knowledge about different plans, also make sure to discuss these options with your mortgage broker or lending company you decide to work with.

4. Pre-Payment

You should know that how often you made additional payments on your mortgage without being can assessed a penalty? And how much you can pay?

5. Number of Payments

Also make sure you choose the payment plan that is most suitable to you, whether it is weekly, biweekly or monthly payment plan you should feel comfortable with it.

6. Penalties

Also it is important for you to know that how much amount you’ll have to pay in case you decide to opt out of your mortgage term.

In the end, whether you decide to use a mortgage broker to help you through the mortgage process and home buying process, it is important to do a lot of research and consider different options and make your decision. Some banks or lending companies might make the mortgage process difficult for you, only a mortgage broker can guide you and steer you in right direction through the whole process, securing a good rate for you. Don’t panic and ask for opinions and suggestions from your friends and relatives.

Avon Financial is a reliable mortgage company working for your benefit in Brampton. We can give assist you and guide you through the mortgage process. Contact our specialist today at 905-216-5563.

Benefits of a Mortgage Broker
Why Avon Financial
Mortgage Glossary