What is the difference between a mortgage broker and my bank?

While a bank can only offer their own products, a mortgage broker has access to hundreds of lenders. Many people assume that the bank is giving them the most favourable rate and term for their mortgage. More often a Mortgage Broker can find you a much better rate and can tailor your mortgage to your needs.

Here are 10 Reasons to use a Mortgage Broker

• Access to different lenders, banks, trust companies, investors and financial institutions.

• Fast credit and loan pre-approvals with no cost or obligation. (Some conditions may apply)

• They are experts at matching you with the best-suited mortgage.

• Get mortgage rates at wholesale, guaranteed up to 120 days.

• They work for YOU, not the bank.

• They are up-to-date on all the mortgage rates, terms and re-payment options available on the market.

• They only specialize in mortgages and are knowledgeable on current trends.

• They increase competition in the market place, thus keeping rates low.

• They save you time and money!

• Brokers have vested interest in satisfying your needs since they rely on referrals and repeat business.

How much do I need for a down payment?

There is a common misconception that you need 20% of your home’s purchase price, as a down payment. This is simply not true. You can purchase a home with as little as 5% down!

Why is it important to get pre-approved?

Getting a complete pre-approval in place, before your house hunt, is very important. Imagine finding the perfect house, only to learn that you can't get a mortgage for it. There is nothing worse! Having that pre-approval can save you and your realtor time, prevent any disappointment and increase your negotiating power. Above all, it will instill you with home buying confidence!

How do lenders determine how much I can borrow?

Lenders use your income and existing debt to qualify you for the mortgage. If you are an employee on payroll with a fixed salary or minimum hours guaranteed, then your full salary is used as long as you are not on probation. If you receive a bonus or commission, or if your hours fluctuate, then a two-year average income is used. If you are self-employed, the lender will use a two-year average of your reported income. *There might be extra income that can boost the application including Child Tax Benefit, Spousal Support, Pensions and investment income.