Are you missing out on the best mortgage solution because of mortgage broker myths? You may be surprised to learn that this could be the case. Although a large percentage of Canadians who use brokers report that they do so in order to get a great deal and benefit from the expert advice provided, there are still many people who avoid working with a mortgage broker because they are misinformed. Here are the top 5 mortgage broker myths as well as the myth-busters:
1.You need to pay to work with a mortgage broker
It’s a common misconception that when you work with a broker, you’ll need to pay him or her. However, this is not the case. A mortgage broker is usually paid a referral fee by the mortgage lender such as a bank, credit union or other type of lender. Those who are applying for a mortgage do not need to pay the mortgage broker they work with.
2. You only need a mortgage broker if you have bad credit.
Another common mortgage broker myth is that you will only need to work with a broker if you have bad credit. Again, this simply isn’t true. Whether your credit is good, bad or in-between, mortgage brokers focus on finding the best possible mortgage solution for you and your family. If you do happen to have bad credit, the best solution would be finding a lender who is willing to lend to you. If you’re credit is great, however, you can still benefit – as your mortgage broker will then focus on finding a lender who is willing to give you the best rate and/or the best mortgage terms.
3. Mortgage brokers work for the lenders
Although mortgage brokers build strong relationships with potential lenders and receive a referral fee from lenders, a good broker is always focused on the needs of their client and negotiates on behalf of their client to see that those needs are met.
4. I don’t need a mortgage broker because my bank will give me the best rate possible
You’re a loyal customer – your bank should reward you with the best mortgage rate possible, right? Unfortunately, no. Many banks actually offer their customers rates that are higher than they need to be. This means that if you don’t shop around (your mortgage broker can do this for you), you could be missing out on a better mortgage solution, and paying more money in interest than you really need to.
5. I have a poor credit history, a mortgage broker can’t help me
A poor credit history or other past issues may impact your ability to get approved for a mortgage. It doesn’t mean however that you should completely give up your dreams of owning a home. If you feel that it is financially the right time to buy a home but have been rejected by a lender, a mortgage broker can help. Mortgage brokers have a network of lenders they can utilize in order to find a one that is right for you. Further, mortgage brokers can work with you to develop a plan of action to improve your credit.
Still on the fence about working with a mortgage broker? If you are looking to buy a home, cottage or other property in Barrie or surrounding areas, connect with me at 705-315-0516 to discuss the benefits of working with a broker. I can also answer any questions you may have about the process; I’m qualified, experienced, and knowledgeable and I’m here to help.