Buying a home is one of the most important transactions you will ever make. It’s also one of the most expensive, as you will not take on this much debt for any other purpose during a normal life. Then there’s the stress that comes with looking for the right house, going through all the negotiations, and sorting out the finance. Your mortgage is something that needs careful consideration and should be researched and investigated in depth.
This is why we’re going to talk to Vancouver readers why they should think very hard about using a mortgage broker when looking at buying property in and around the city. Whether you are looking for a first-time property or moving up the ladder, buying a house or an apartment, there are many reasons why a broker will make your life a lot easier and relieve you of some of the stress. Let’s look at what a mortgage broker does, and then we’ll talk some more about finding the right one.
What a Mortgage Broker Does
A mortgage broker will not work for a mortgage company but with many of them. Their basic purpose is to find you – the consumer – the best deal for your individual circumstances. A broker such as Pinsky Mortgages is a good example. They work with many clients looking to take out a mortgage on property in Vancouver and are highly respected and established. If you want more advice, you may want to talk to them about what they can offer.
Meanwhile, here are a few advantages of using a mortgage broker to find your Vancouver home:
- The broker will have access to the latest and best deals on the market.
- A local broker knows the area and what deals and packages are best suited to Vancouver buyers.
- The broker will be able to advise you as to the different types of mortgage and why one may be more suitable for your individual circumstances.
- They will be able to assess your income and personal status and help you arrive at an amount you are comfortable with and able to borrow.
- The broker will also handle all the paperwork that does not need your direct input, thus taking a lot of the weight of the transaction off your shoulders.
Bear in mind that when going to a broker – rather than directly to a bank or other lender – you have access to many more options. A lender will be tied to products provided by their employer and will not be able to advise you to go elsewhere for a better deal. A broker will have access to all the best deals and may also be party to some that are not freely available on the open market but specific to them.
There is a great sense of relief and peace of mind involved in having a qualified, experienced and preferably local mortgage broker on your case, and you’ll find they offer more than just a simple service. Now let’s look at what you need to consider – having said all that – when choosing from the many mortgage brokers who ply their trade in your area.
Choosing a Mortgage Broker
It’s worth knowing that right now mortgages are in demand after a slump in the past year. This has led to some great deals being available thanks to governments wishing to kick start their economies, and lenders seeing an opportunity to get more customers after a lean period. What should you look for when choosing a mortgage broker? There are few questions to ask yourself and them, so let’s have a look at some:
- It is often best to stay local as the broker will understand the local market, the deals that are relevant to you, and how to apply packages to local properties. It also means your broker is close at hand so you can talk to them without the need to travel at expense.
- Ask them who they work with most and why and find out what the best deals are from their preferred suppliers. They will not be biased towards one but will be able to tell you which lenders are currently offering the best and most cost-effective deals.
- Make sure they explain to you the different types of mortgages you can choose from and why they differ and be sure to have them explain them carefully with reasons why they are or are not for you.
- Find a broker that is up front about their fees and charges. This is often hidden away in the small print, but you need to know what you will be paying before you commit to a deal. Hidden charges can add greatly to the final cost, so you need to be certain that you have everything agreed and signed for.
- Ensure they make you aware of the type and level of interest repayments, whether it will fluctuate or is fixed, and how you can expect it to change across the years.
Perhaps most importantly we recommend you find a local broker with whom you get on easily, understand and feel comfortable with as they will need to ask questions about your personal circumstances and finances.
Our Final Words
Taking plenty of advice about mortgages is the correct approach as this is one of the biggest decisions of your life. With a reliable, reputable and understanding broker on board you can be sure of getting the best deal for your Vancouver mortgage and that can make a great difference in terms of affordability and what you need to spend.
You might begin your search for a mortgage broker by asking your friends, family and colleagues in the Vancouver region, but be sure to engage the services of an independent broker rather than an adviser working for a specific lender or lenders. This way you are assured of being offered the best deals available and the widest choice of mortgages on the market.