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Choosing a Mortgage
Broker
in Toronto
When shopping for a mortgage,
it's important to consider not just
the mortgage rate, but the
professional advice and service you
deserve to get from an experienced
mortgage broker in Toronto. Too many
mortgage shoppers tend to only look
for the "lowest mortgage rates"
while forgetting about important
factors such as mortgage product
terms , flexibility and pre-payment
privileges.
There are many low mortgage rates
available these days but some
lenders will have clauses in their
contracts causing large penalties &
fees later on when selling your
home, refinancing or when applying
for an early mortgage renewal. An
experienced mortgage broker can help
you avoid problems in the future and
give you professional advice to help
you decide which mortgage products
suit your needs and financial goals.
Mortgage brokers in Toronto can
arrange your mortgage with a wide
variety of lenders . Most brokers will have
access to approximately 40 different
lenders such as banks, trust
companies and credit unions. As
well, an established
Toronto
mortgage broker will have access to many
private lenders for non-conforming
mortgages such as self-employed,
stated income, or bad credit
mortgages. An experienced mortgage
broker should give you a variety of
product options along with a
competitive low mortgage rate and
efficient service. Most brokers will
not charge a fee for their service
as they get compensated by the
lenders.
Look for testimonials on their
website to review how past clients
have commented on that mortgage
brokers' previous services. Ask how
long they have been in business to
determine their level of knowledge
and expertise in the mortgage
brokering industry. Many mortgage
shoppers have had great experiences
using an experienced
mortgage broker
in Toronto. You
should feel comfortable with the
advice and professionalism a broker
gives you before submitting an
application. Take the time to
interview your mortgage broker so
your questions are answered in
detail and you are comfortable about
the mortgage application process
from start to finish.
Fixed
Mortgage Rates - 5 year or 10 year
term?
During 2012, mortgage rates have
dropped to lows not seen before in
the history of Canadian mortgages.
Many consumers are now considering
taking longer terms such as a 10
year fixed rate at 3.89% for
example. One of the major reasons
for taking a 10 year term is that
the Bank of Canada has indicated
that more normalized rates will be
seen in the market starting at the
end of 2012 and onward.
Historically speaking , the average
mortgage rate for a 5 year fixed is
around 5% to 7% while a variable
would be 4% - 6%. Given the past
rates we have seen not long ago in
the early 2000's, a 10 year mortgage
could be very beneficial a few years
from now when most consumers are
renewing at 5% or 6% for example.
With mortgage portability , a 10
year mortgage can be carried to
another home purchase if you sell
the existing one you started the
mortgage with. Most mortgages are
also assumable, meaning a buyer of
your home can assume the 10 year
mortgage rate you have and this
could be a good selling feature as
well.
As the 5 year rate is about 70
basis points lower than the 10 year
currently, it is also at attractive
levels but a renewal after 5 years
into higher rates at levels around
6% could be very possible. Obtaining
a longer term mortgage would help
avoid that scenario and could save a
borrower some significant changes to
their mortgage payments and interest
charges.
More
Canadians using Mortgage Brokers
The percentage of
Canadians using
mortgage brokers to buy
their homes has increased
significantly, according to
a report released today.
The Deloitte
report, Winning Strategies
in the Brokered Mortgage
Marketplace, said that in
the 1990s mortgage brokers
numbered in the hundreds and
were a last resort for
borrowers unable to obtain a
mortgage directly from a
bank or credit union.
"Over the last
decade, an increasing number
of viable options for
borrowers have surfaced,"
said the report. "In
addition to branch-based
lenders, borrowers can now
consult with the banks' own
mobile mortgage specialists
as well as independent
brokers - while also
conducting their own
research online.
"In this changing
and information-abundant
environment, the mortgage
brokerage channel has
emerged as a legitimate
competitor."
The report said
share of origination
transactions increased from
26 per cent in 2003 to 38
per cent in 2009 as mortgage
brokers made particular
inroads with first-time
homebuyers and young
Canadians.
"Overall, this
channel has evolved from a
fragmented 'lender of last
resort' network to a
legitimate option for prime
customers."
Jim Murphy,
president and CEO of the
Canadian Association of
Accredited Mortgage
Professionals, said the
organization will be
releasing its annual report
in early November.
"Mortgage broker
share overall is about 25
per cent of the market,"
said Murphy. "It's higher
for first-time buyers.
First-time buyers are more
likely to use a mortgage
broker than those that renew
their mortgage.
"The percentage of
mortgage brokers is higher
in Alberta and British
Columbia overall."
Murphy said the
percentage of mortgage
brokers has grown
significantly although in
recent years it has levelled
off.
"We had big growth
in the 1990s and in the
first part of this decade,"
said Murphy. "Brokers were
very much seen in many ways
20 years ago as the lenders
of last resort. So you
couldn't get a mortgage
through a credit union or
ATB or the bank and you went
to a broker. Usually charged
the higher rate. Usually
charged you a fee in order
to get a mortgage.
"That's changed
dramatically in the last
10-15 years. Brokers are
seen in a much more positive
light. They shop the market.
They have access to
different lenders including
banks and credit unions and
they really work on behalf
of the customer."
Source: Calgary
Herald
About Mortgage
Intelligence
Mortgage Intelligence is
Canada's leader when it comes to
arranging mortgages for homeowners.
Together with affiliated firm Invis,
Mortgage Intelligence reached a new
milestone in the industry in 2010 —
$100 billion in mortgages funded.
Coast to coast our team of
professional mortgage brokers
provide a full range of mortgage and
insurance products supported by
expert mortgage advice tailored to
your unique goals and financial
situations. Mortgage Intelligence is
the largest mortgage broker in
Canada, with more than 1,000
independent consultants and
associates in offices across Canada.
Mortgage Intelligence consultants
help clients make better mortgage
decisions for their home or vacation
properties, mortgage refinancing,
renewals, second mortgages, debt
consolidation needs and specialized
mortgage requirements. Mortgage
Intelligence has become a leader in
introducing innovative products that
cater to niche segments such as the
self-employed and poor credit
clients.
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