What is a Mortgage Broker?

• They act as an intermediary between the borrower and lender
• They control the transactions between the two and more
• They take care of hunting down the best mortgage products and interest rates by using their personal network of financial institutions and lenders

• A bank will only give you a single option- their own products and rates.
• There are numerous lenders and financial institutions out there with different mortgage products at different rates and you want to make sure that you are getting the best product and rate.
• Your mortgage broker will be able to gain access to your banks products and compare them to those from other lenders in order to ensure that you are getting the best option
• Make your bank compete for your business. When you work with us you’ll have an experienced mortgage professional to help you make sense of your options and understand the benefits of each mortgage product

Do mortgage brokers work for the mortgage lenders?

• No, mortgage brokers work solely for the borrower. It is up to the financial institutions and lenders to compete for your business by showing us their top products and rates

How much do I pay my mortgage broker?

• Nothing! Mortgage Brokers are paid for by the lender. There is no cost to you!

How do I qualify for the mortgage I want?

• Documentation of your financial history is required for your application such as your gross annual income, credit history, your current/previous assets, and your current/previous liabilities.
• You will require copies of detailed documents and outlines representing the above items. This information will determine the amount available to borrow.

What is the difference between a fixed rate and variable rate mortgage?

• Fixed rate mortgage: Your interest rate stays at a consistent, fixed rate throughout the mortgage term; which can vary from 6 months to 10 years depending on your preference. Over the course of the mortgage term, more of the payment will count towards the principal amount borrowed and less towards the interest.
• Variable rate mortgage: Your mortgage payments are fixed but the interest rate will fluctuate depending on the Prime Rate. When rates go up, a larger portion of your payment will go towards interest and when rates go down, more of your payment amount will go towards the principal.

Is there any benefit to getting a pre-approval?

• Yes, there are multiple benefits to getting a pre-approval before you go house hunting
• It’ll allow you to be able to secure your mortgage rate for a period of time
• It will give you an idea of what you can afford and will make you a more competitive buyer as the seller will know that you are a serious buyer with their finances in order. This will also result in more negotiating power.
• It’ll help speed up the closing costs since you will already have most of the paper work completed.

Is a mortgage useful for helping to pay off debt?

• Definitely! A mortgage loan is actually a common method for getting rid of debt. Through mortgage refinancing, you consolidate your credit card debt, or free up money for other investments if you’d like!