Using a Mortgage Broker

At Oriana Financial we are often questioned as to why people should use a Mortgage Broker instead of going to their banking institution. Mortgage Brokers do not work for any specific lending institution and typically do not lend money but rather put you in touch with those who do. We are aware of private lenders that you may not be able to find on your own. It’s our role to find the lender with the terms and rates that best suit your needs.

Sometimes it’s easier to determine if a Mortgage Broker is right for you by comparing services offered from a Financial Institution versus the services available when you work with a Broker.

Broker	Major Bank Personnel
Access to numerous lenders and products	No access – limited access to products outside their own
Exclusive Broker Products Available	No Access to Broker Products
We work with your best interests in mind	Works on behalf of the Bank
Work 7 days a week with extended hours	Limited Bank / Branch hours
Instant Access to new programs	New programs may not be available
Even though you will have access to many lenders, your credit report will only be requested once	If you are looking at various financial institutions for the best mortgage, your credit report will be requested each time, which may have a negative effect on your credit rating
You get the best rate you qualify for! You don’t have to ask for it.	You have to ask for the best rate and even then it might not be the best or lowest
If rates drop before closing, you get the new lower rate without requesting it	If rates drop before closing you already signed the contract so are entitled to the new rate
Brokers build long term relationships with clients and lenders
Options! We find a lender to fit your unique needs
Brokers know that mortgages are more then just rates
We can travel to you

 

In summary there are a lot of great reasons to consider meeting with a Mortgage Broker to discuss your options. Contact an Oriana Financial Broker to set up a meeting to discuss your options today.

Other FAQs

How many lenders can you draw from and who are they?

There are well over 20 lenders to draw from, far too many to list. Some very strong and solid mortgage companies that only mortgage broker/agents have access to. These companies deal only in quality mortgages which ensures clients can have a low rate with flexible terms.

What are your fees?

In most cases our fees are covered by the lender.

What should I know when shopping for a mortgage broker?

Get a referral from a friend or someone you trust, if that option is not available look around for a broker with AMP behind their name. These brokers are licensed and keep up with their educational and IMBA requirements. They go a step further. Talk to a couple brokers before you commit to the relationship. Short or long term, your broker will be listening and reviewing your financial details.

I’ve been a loyal bank customer for years, why should I deal with a mortgage broker instead of my bank?

Mortgage Broker / Agents are not trying to take you away from your bank, we can even help you get a better deal from your own personal bank..

Should I also shop around to get the best mortgage rate?

Why would you? You have just enlisted us to do that for you. If you like and trust your broker and they have been referred to you by a trusted friend then you should let the broker do the worrying for you. You just sit back and relax!

What is the difference between fixed and variable rates?

Fixed rate – Is just that, it’s an interest rate that does not change over the course of the term eg: a 5.5% for 5 years means for 5 years your rate will be 5.5% at the end of your five years you; with the assistance of your broker, will renew your mortgage for a rate that is available at that time. Most if not all fixed mortgages offer accelerated payment plans and prepayment privileges.

A variable rate – works with the Bank of Canada. The Bank of Canada sets the overnight lending rate let’s say It’s 1 % (this is the rate they lend money to the banks) The banks / lenders then lend out the money at a 2% mark up. So prime would now be 3%.

Your mortgage rate is going to be set at the time you sign your contract so let’s say prime minus 0.30 bps your current rate would be 2.70%.

The biggest issue with the variable rate is you must be flexible and not adverse to change. With most mortgages your payment will change with prime adjustments. Eg. Prime goes up by 0.25% , the following month your payment will adjust to reflect the change as your new mortgage rate is 4.05%.

I hear the term “closing date” often, what exactly does that mean?

Closing date is the date you get the keys to your home. In the example of a refinance, it is the date the new mortgage is registered and the old one discharged.

How long can you lock in my pre-approved mortgage rate, months? Year?

Usually 120 days, this depends on the lender. Some lenders are not offering pre-approvals, but only a “rate hold”. A good broker has the ability to underwrite and identify a deal that will be easily placed with any lender.

What Will My Costs Be?

There are many extra expenses that come along with owning a new home. It is a good idea to be prepared for such costs. Some notable fees include:

• Home Inspection
• Appraisal – Property Survey
• Lawyers Fees
• Moving Costs including hook ups
• Land Transfer Tax
• Title Insurance
• CMHC / Genworth / Canada Guarantee (these are mortgage insurers when your down payment is less than 20%).

You should and can be prepared for all the hidden costs. To discuss this further please contact us.