May 4, 2011

What to Look for in a Mortgage Broker

by CanEquity

Finding the Right Mortgage Professional for your Financing Needs

One Google search with the key words “mortgage broker” can bring up staggering results: 1.26 million pages from Canada alone. In that gaggle of professionals how do you ensure you are selecting the right one to handle the pertinent item of your home financing?

First off, if you are purchasing within Canada, your mortgage is legally required to be provided by a Canadian mortgage lender. To ensure the broker you are scouting online is indeed operating in Canada, check out their contacts page and look for a physical address and phone number. Check their secure online application and be sure the URL ends in a .ca. And finally, pop the company’s name in a Better Business Bureau of Canada search and check out their credentials. This is your home you’re talking about. Ensure the company is accredited, has a top rating, and no open complaints.

Quality or quantity? Though brokers list the total number of mortgage lenders with which they are associated, it really only matters that they are on the A list with the lender that will provide you the best product and term for your situation. Check out the top posted rates the broker is offering. How often are these rates updated? Have you consulted a Canada-wide mortgage rates comparison chart to see if these rates are competitive? Do you know the terms and conditions these rates will come attributed with?

Your home is one of the largest, if not the largest, financial commitments you will make in your life. Your broker needs be transparent, informative, and willing to treat this transaction with as much care and focus as if it was their own.

Once you have found an attractive mortgage rate with a company that has proven longevity and client satisfaction, it is time to submit your online mortgage pre-approval.

A mortgage pre-approval puts you under no obligation to commit and is cost-free. This gives you the opportunity to see if you do indeed qualify for that top posted rate on the amount of financing you require, how fast your broker is to get back to you, and how helpful they are when explaining your options to you. A mortgage pre-approval should also provide you a rate hold, securing the best rate available for up to 90 days while you shop around.

If time is of the essence contact the mortgage broker beforehand and find out how fast they are able to process your request. The same rule applies to renewal time. If you’ve left yourself in a time crunch, contact the mortgage broker directly and see if they can work with you to secure you a lower rate with the terms you desire in the time allowance you have left to you.

This article was provided by CanEquity.com.