Tips For What to Ask Your Mortgage Broker

The Canadian mortgage market is rapidly changing, especially in hot markets like Vancouver and Toronto. Canadians are more than ever being concerned with getting the best interest rate for their new home and as such, mortgage brokers are becoming an ever-increasing resource for new and experienced home buyers to get the very best mortgage rates for their new home. Here are some tips for finding the mortgage broker that is best for you and what to expect!

Tell Your Mortgage Broker your short and long term goals

Letting your mortgage broker know what your goals are in the short term and what they are in the long term is very important. They are not there just to get you a mortgage but rather to help guide you through the various steps it takes to get lending plan that will be right for you. You may want to tell them if you plan to move in a few years, that way they can help you find a mortgage plan that includes the option to carry your rate over to a new property. Or if you have found your forever home, they will know to get you a mortgage that will give you the best benefits in the long term. Knowing your details on your short and long term goals is a very important step to ensure that your mortgage broker, who works for you, knows exactly which mortgage plan is best for you.

Let them know your sources of income

Knowing only how much money you make is not enough for a mortgage broker to get the you the best possible lending plan for you. By telling them your various sources of income, your mortgage broker will be able to talk to lenders and get you a plan that will fit with your goals and those of the lenders. Some lenders will work only with people who have certain types of income. For instance, some lenders may only want to work with people who have investment or rental properties, while others may only want someone who has steady employment income. Some lenders specialize or have special plans based on a person’s source or type of income and it’s a great benefit to speak to your mortgage broker about what options you have based on your income types

Tell them your disposable income

Letting your mortgage broker know your set expenses each month will give them a better idea on how flexible you are. People with little to know money left after expenses will have different options for mortgages than someone who has a lot of disposable income. Fixed rate mortgages will have the same payment rate for the entire term of the mortgage while variable interest rates change as interest rates change. Both have advantages but those with little disposable income should look into fixed rate mortgages while those who have a lot of disposable income can afford changes in payments that come with interest rate changes. Both types of mortgage have their advantages and your mortgage broker will be able to tell you the best options based on your specific situation.

Just remember your mortgage broker works for you and will work to get you the best mortgage rates and programs for your needs. They will work with lenders to ensure that buying a home is the best decision you can make, and the process is as painless as possible. Feel free to ask your broker questions, the more information they have the better they will be able to do their job and get you into your dream home faster.

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