I always say that when you are buying a house, whether it be your first home or you are upsizing, you need to get your financing in place first. Many people prefer to use their current financial institution, but it may be to their advantage to speak with a good mortgage broker as they may be able to find you a better mortgage product at a better rate.
To find a good mortgage broker just ask your REALTOR®. He or she should be able to provide you with at least three names of reputable mortgage brokers. Many consumers tend to shy away from mortgage brokers because they don’t understand how they work. Mortgage brokers get paid by the lender. Most often they have access to more than 100 lenders and have the ability to place your mortgage with the mortgage product that most suits your needs. It is not always just the interest rate that makes a good mortgage.
I once had a situation where my client was upsizing and the current financial institution they were using wanted to charge them a penalty and give them a blended rate for making changes and adding to their mortgage. I referred them to a mortgage broker who was able to negotiate with their lender and the penalty was waived as well as receiving a lower interest rate. All this at no cost to them and the mortgage broker was paid by the lender!
Home buyers purchase a home for many reasons. Some may be buying a home as an investment and are not concerned with locking it in for a long period of time. Their mortgage needs will be different than a young couple buying their first home as these buyers are early in their careers and will be upsizing in a few years so they will need a product that has more flexible terms. Someone buying a move up home may be more established in their career and would prefer a product with more payment flexibility. The number of situations is endless.
In my opinion anyone considering mortgage financing for their home purchase should do their due diligence to make sure they have the right mortgage for them. We all know, ONE SIZE DOES NOT FIT ALL!!
We would like to hear your mortgage financing experiences, good or bad. Please send us your comments.