How Does A Mississauga Mortgage Broker Save You Money On Your Mortgage?

Do you want to take out a mortgage soon? You usually have two options: you can agree directly with a financial institution or do business with a mortgage broker. If you want to save time and money when buying or refinancing your property in Mississauga, consulting a broker is your best option.

The Mortgage Broker Calculates Your Borrowing Capacity

If you have no idea of ​​your borrowing capacity, the mortgage broker will determine it as realistically as possible. His goal here is not to find you the highest mortgage, but rather to find the loan that best suits your needs and budget.

Not familiar with mortgage jargon? Do not panic, the broker is there to help you see clearly. He will explain to you, for example, the advantages and disadvantages of fixed rates and variable rates without you having to do long and tedious searches on the Internet.

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It Helps You Prepare Your File

Pay stubs, bank statements, investment statements, purchase offers, school and property tax accounts: mortgage lenders usually require a long list of documents. A mortgage broker in Mississauga will help you gather all your paperwork and ensure that the various forms are properly completed. 

By being supported in your approach, you will be less stressed. You will also avoid having your application refused or its acceptance delayed because you failed to submit a document or forget to sign a form.

In addition, if you find yourself in a particular situation the broker will help you prepare your file well to increase the chances that your application will be accepted by a lender.

When you are ready to take out a mortgage, you will certainly want to compare the different mortgage products available on the market. However, this process can take a long time if you do it alone. 

You will have to meet one by one with the advisors of the many financial institutions. Additionally, some lenders are only open during office hours, possibly requiring you to take time off work to meet with them.

A mortgage broker in Mississauga saves you from having to go back and forth to different financial institutions. In a single meeting, you will be able to compare the best products offered by a multitude of lenders. 

He Negotiates The Best Rate And The Best Conditions For You

Do you hate negotiating? That’s good because the mortgage broker is a skilled negotiator. This great connoisseur of mortgage products negotiates for you with a multitude of financial institutions. When he presents you with the different offers from lenders, you know that you have, for each of them, the best possible interest rate.

In the case of a mortgage loan, a lower rate will save you hundreds or even thousands of dollars annually. For example, a $250,000 mortgage at a reduced rate of 1% will save you up to $11,662.

It’s fine to have the best interest rate possible, but if the conditions attached to it do not suit us, you will not be satisfied. Since the mortgage broker is an independent advisor (he works for you and not for a particular financial institution), he will only recommend the products that suit you best.

During the negotiation process with financial institutions, he always keeps in mind your situation, your budget, your interests, and your short and long-term projects. For example, if you only plan to keep your condo for a few years, he will not recommend that you take out a mortgage with significant penalties in the event of early repayment.

In addition to providing you with the best possible rate and terms for your mortgage, the broker will ensure that you have thought about the costs associated with buying a property, such as moving costs, notary, and transfer duties. Buyers tend to forget some of these costs, which can have serious consequences on their budget.

He Ensures The Smooth Running Of Your File Until The Transaction

The broker’s work does not stop after signing your mortgage loan. He acts as an intermediary between the various stakeholders in the real estate field. 

He thus ensures the smooth running of your file until the signing of the deed of sale at the notary. You don’t know a notary? He can surely recommend one to you.

Once you’ve moved into your new home or refinanced your property, your broker continues to help you save time and money. It keeps you informed of new mortgage products and rate fluctuations. 

If you have a variable rate, he will contact you when it is time to convert it to a fixed rate. This will prevent you from losing money because your rate has increased too much.

Mortgage Financing: What It Is And When It’s Convenient

Mortgage financing is a particular type of loan, with specific characteristics that differentiate it from other types of personal loans.

This loan is often compared to a mortgage: although there is a mortgage in both, its characteristics make it a personal loan in itself.

Characteristics And Functioning 

This type of loan, as the name itself indicates, provides for the signing of a mortgage to guarantee the repayment of the loan. This allows the bank or financial institution to be protected in the event of insolvency, which in this case will acquire ownership of the property subject to guarantee.

A characteristic that distinguishes mortgage loans is the amount that can be requested, which can also reach very high figures, depending on the value of the asset given as collateral.

The duration of the loan is also proportional to the value of the asset given as a guarantee and to the amount financed.

Generally, these types of loans have a longer duration than the average personal loan.

The specific characteristics of mortgage loans also vary greatly depending on the financial institution and can differ significantly. Therefore it is always advisable to choose after comparing several mortgage loan proposals.

To obtain this type of loan, the applicant must meet certain personal, economic, and income requirements.

What Documents Are Required?

A mortgage loan does not differ much from a regular personal loan as regards the documentation to be presented.

The applicant’s identification documents (identity card and tax code) and documents certifying an income (pay slip, tax return, etc.) are usually required.

The only exception is given by the need to provide documentation certifying ownership of the property, which must be 100%.

Otherwise, the people who hold the remaining shares of the property must authorize the registration of the mortgage.

As you can imagine, the evaluation of the mortgage loan application could take longer than that required for a common personal loan, especially depending on the evaluation times of the mortgaged asset.

Finally, we mention a particular form of mortgage financing, still not widespread in Italy, which is the mortgage loan.

When Is Mortgage Financing Worth It?

Mortgage loans allow you to obtain even high sums, depending on the mortgaged assets. Furthermore, due to the presence of this collateral guarantee, the obtaining criteria are more flexible than for other forms of loan.

Another advantage is given by the fact that mortgage loans generally have low-interest rates when compared to those normally applied for personal loans.

In any case, the risks in the event of non-repayment of the loan are high, so think carefully about your economic situation.

Before choosing a mortgage loan, you must carefully evaluate your risk of insolvency, and make sure that the mortgaged asset has a comparable value to the amount to be received.…

Real Estate Agent Vs Mortgage Broker: What’s The Difference?

Real estate agents and mortgage brokers share similar job attributes. As licensed real estate professionals, both help their clients in obtaining residential or commercial properties. But their specific tasks are very different.

A real estate agent helps buyers and sellers find or sell physical property, and a mortgage broker helps buyers find financing to purchase a property.

Real Estate Agent

Because the real estate industry can be extremely competitive, if you want to become a real estate agent, an outgoing personality, a desire to be helpful, maturity and dependability are essential qualities.

A residential real estate agent should also be able to present a home and sell the features it provides attractively. A creative eye for design and detail can be a strong asset in this profession.

Depending on whether an agent is acting on behalf of a buyer or a seller, the following responsibilities are typical:

  • Show properties and houses
  • Find properties and homes for sale or buyers
  • He negotiates in the middle and acts as a link between buyer and seller
  • Follow the local real estate market
  • Provide funding guidance (in some cases)

Qualifications to become a real estate agent may include a background in sales or marketing and at least a high school diploma.

Every real estate agent must have a license. Depending on the state and agency, additional education in finance and housing laws may be required.

The job often requires long hours and many days of showing homes or commercial properties to prospective buyers without a sale, so patience is also a must.

If you like events to move quickly and need a paycheck every week, the job of a commission-based real estate agent may not be for you.

Mortgage Broker

Mortgage brokers act on behalf of clients to find them the best interest rate and terms for a mortgage, whether on a private residence or a commercial property.

Researching the latest interest rates and loan terms is an essential and ongoing part of a mortgage broker’s job to secure the best rates for a client.

Some brokers may develop relationships with preferred lenders, but a good broker will look out for the best interests of his clients.

Mortgage brokers have to accommodate their clients’ schedules, and a friendly, outgoing personality can go a long way with clients.

Being a mortgage broker often requires long hours and many days of searching for a lender willing to work with the prospective borrower, so patience is just as crucial in this field.

This quality will also serve brokers well when they have to accept multiple rejections from lenders when trying to put together a loan.

Mortgage brokers can earn a salary and additional compensation in the form of a commission based on a predetermined percentage of secured mortgages.

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