Frequent Questions asked about Mortgages – From Daryl Harris Mortgage Broker

1)      What is the difference between a bank and a mortgage broker?

A bank offers their mortgage products only.  The bank will have posted rates and sometimes have specials on rates.  In most cases you have negotiate or haggle with your bank to get better rates.  A mortgage broker has access to many different lenders and hence many different mortgage products.  Mortgages are already discounted meaning you don’t have negotiate or haggle for the best rate, the mortgage broker will work with you to get the best rates and options for you.

 2)       How much house can I afford?

While you can figure this out with many calculators available on the internet, it is best to get the advice of someone who can help you complete a proper pre approval to get an accurate amount.  Some people will require advice on how to reduce their debt load to increase the amount they qualify for.

 3)      What does it cost me to use a mortgage broker?

In most cases, it does not cost the consumer to use a mortgage broker.  The mortgage broker is generally paid by the lender that is utilized.

 4)      How do I get a down payment?

Down payments can come from various sources like an immediate family gifting the money, existing equity in your home if you already own one or from savings or investments accounts.  If you are a first time home buyer, RRSP’s can be a source of down payment up to $25,000.

 5)      Does paying bi-weekly save me money?

No, not a significant amount.  In most cases over 5 years the savings are less than $200.  Most consumers benefit by having their payments come out of their bank account on days that are convenient for budgeting purposes.  Don’t let anyone tell you otherwise, I will show you the proof.

 6)      Can I get a mortgage if my credit is not perfect?

There are 2 answers to this one, yes and no.  Your credit score is an important part of this answer.  If you can’t obtain a mortgage now, you should get advice to improve your score and make home ownership a reality in the future.

 7)      Do I have to haggle or negotiate to get the best mortgage rate?

While some people enjoy this (they don’t always get the best rate either), you don’t have to haggle or negotiate if you use a mortgage broker.  It is their job to get the best rate and options for you without the hassle, stress and cost associated with shopping around.

8)      Should I choose a fixed rate or variable rate mortgage?

Great question and there is no easy answer.  There are 3 questions you need to answer to help you understand the best option for you.  Call me to discuss.  204-928-7707

 9)      What does a mortgage broker do?

A mortgage broker works for both the customer and the lender chosen to ensure both parties benefit from a mortgage transaction.  Integrity and honesty to both parties is important throughout the process.  The mortgage broker should provide advice to the consumer while providing the lender with supporting documentation to complete the transaction.

 10)   What can I do if my mortgage penalty is high?

Mortgage prepayment penalties can be very high, there are some programs available through mortgage brokers that will help you reduce your penalty.  Get advice from an Accredited Mortgage Professional before paying a mortgage penalty.

11)   What does the AMP designation for a mortgage broker mean?

The Accredited Mortgage Professional (AMP) designation differentiates mortgage professionals from others in the mortgage industry.  When dealing with an Accredited Mortgage Professional you have a mortgage broker who has met a high standard of ethics and is committed to ongoing training and continuing education to benefit the consumer.

 

Source: Daryl Harris Mortgage Broker