By Paul Taylor, president and CEO of Mortgage Professionals Canada
The homebuying and mortgage process in Canada has become increasingly complex, but with the help of an expert mortgage broker, you can set your mind at ease and ensure you are making the right choice when it comes to one of the largest and most important financial decisions of your life.
There are many benefits of using the services of a mortgage broker when buying a home, including helping you determine what kind of property and budget are realistic for your situation. Mortgage brokers are educated about the various mortgage products and rates, as well as the issues and trends that may affect you and your mortgage now and into the future. Your mortgage broker will ask questions in order to fully understand your income, type of work and total assets, as well as whether you’re new to Canada or self-employed. They then negotiate on your behalf with multiple lenders to ensure you are matched with the best product to meet your specific needs.
And it’s a service that is generally free. In the vast majority of cases, mortgage brokers in Canada are paid by the lender once they successfully place your mortgage. So it’s in a broker’s best interest to ensure you receive the best possible mortgage product and rate, tailored to your unique requirements.
When should you connect with a mortgage broker?
It’s never too early, especially if you are a first-time homebuyer. If you’re thinking about buying a home, you want to know the mortgage amount for which you qualify before you head out on your search. That way, you can look at options within your budget and avoid the disappointment of becoming attached to a home that’s beyond your financial means. Your broker can also explain how you can take advantage of government programs designed to help first-time buyers enter the market.
Increase your homebuying confidence
If you don’t understand something your mortgage broker has explained to you, be sure to ask questions until you feel comfortable. For example, although rate is important, there are many other aspects that are just as important, such as penalties for breaking the mortgage early, whether the mortgage is portable, and different payment options and amortization length.
Although buying a home is a sound investment idea, it is critical to understand what homeownership entails. Understanding each step of the homebuying process is key to ensuring you will make a wise decision that suits your emotional needs and your financial situation.
Government stress test
In recent years, access to affordable homeownership in Canada has become increasingly difficult. There have been a series of government changes that may impact your eligibility for obtaining a mortgage, including the stress test, which applies to all mortgage qualifications. Navigating the mortgage process can be intimidating at the best of times, and with these changes, it is even more critical that you seek out the services of a mortgage broker who will explain the implications as they pertain to you.
Make sure your broker belongs to Canada’s national mortgage industry association
Trust in the experience and knowledge of a mortgage professional who is a member of Canada’s national mortgage industry association. Bound by a code of conduct, Mortgage Professionals Canada members are committed to their profession and receive ongoing training to help serve you better. Contact your local mortgage broker and let them guide you through the entire homebuying process. You’ll be glad you did.
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