What You Don't Know About Mortgage Agents

I discussed mortgages with a friend this week and he made the comment that he believes many people don’t really know what mortgage brokers and agents do.   I hope to clear this up for you.

When you deal with a bank, you are dealing with one mortgage lender.  Your bank has specific rules and policies, and if some aspect of your mortgage profile does not fit into their strict package, you will be denied, the deal becomes dead.  However, if you seek out a mortgage agent, you will find that we have access to over 40 different lenders, each with a variety of rates, programs, and different types of deals to benefit you, the client. 

In many cases, when a person is declined by the bank, they come to me, and usually, I can help.  Interestingly, if your first stop is a mortgage agent, then you will only have to access your credit bureau once—if your credit is checked too many times, this sometimes negatively effects your credit score.  See a broker, and you will avoid any added problems, like too many bureau “hits.”

Furthermore, this happens to be an opportune time of year to discuss why mortgage agents are a valuable resource to clients.  Each year, the government requires mortgage agents (some are Accredited Mortgage Professionals or AMPs) to upgrade our Broker/Agent License.  This means mortgage agents are educated about everything to do with the mortgage industry, including rules, regulations, laws, etc. 

This education process is to protect clients.  No one else in the mortgage business has to do this—your bank does not do this.

Honestly, by choosing a mortgage agent, especially an AMP,  you are choosing a person who has an up-to-date education, knowledge of and access to a multitude of lenders; ultimately, this will benefit you and get you the best mortgage possible.

Broker’s vs. Bank Again

There have been some serious complaints made against a Canadian bank that recently has smeared the reputation of Mortgage Broker Agents. Having 15 years of experience in the industry, my philosophy is to be truthful but not hurtful. This smear campaign hurts. I take great pains to provide education and information to help clients make a decision and ultimately get a mortgage. The following is my fight back to why mortgage brokers are a good source of mortgage service.

 

1) An individual bank has its own policies. Your profile may not suit that bank but at another bank you may have no problem. I have access to numerous lenders and I then can find the lender that might better suit your needs.

2) All lenders we deal with are sound institution, just like the general banking industry in Canada.

3) You will generally find that my time is not limited to time efficiencies. I will spend the time you require to be satisfied. This is never a guarantee a bank will give you. Ask a bank if you can take an hour or an hour and a half to discuss your needs.

4) A knowledgeable mortgage broker focuses on mortgage not on every service provided by a bank. We are specialists.

5) Never fear, the government regulations on brokers protect you and that should be a comfort to you.

Call and ask questions anytime on any of the above.

Technology: Not Always So Friendly in the Mortgage Biz

The longer I remain in the mortgage business, the more variety I see in the client’s coming forward.  The trend seems to be that older people use the banks because they are accustomed to their services.  Also, the older person typically thinks they know better.  Well, I am in that “older person” group, and when I first got into the mortgage business I soon found out that the bank was not meeting my needs.  I also realized how little I knew.  I wasn’t informed enough and did not realize how poorly my needs were being attended to until I began to learn the mortgage process myself, and the variety of options available to people.

Now, after many years of experience, I seem to see more young people in my office.  They arrive feeling they don’t know much about getting their first home and want lots of help; these are clients wise beyond their years.  This can be a tricky business wherein the explanation and presentation to a lender are essential.

One important note I want to express to these youthful clients’ is that the world of technology is not always so friendly.  Lenders and even mortgage brokers are actively involved in “apps” and using their websites to apply online for mortgages.  Not knowing the “rules of the game” can hurt.  I have even seen a client go against my advice, opting for a different lender.  The misinformed person then chose s product, not realizing they lost the freedom to pay down their mortgage and increase their payment – an extreme disadvantage.

I believe getting what you want and deserve needs expertise.  Contact a broker agent like me to best advise you of all your potential options.  My services are free to all clients: I represent you, not the bank.