Preparing to invest in a home purchase is a big step. It takes some serious planning, thorough research, and sound decision-making to be sure you get it right. From choosing the property, to finding and securing a mortgage deal, it is a process that can be more than a bit confusing.
We at Super Rates want to make it much, much easier for you. We will do this by answering some important questions to help guide you through the process.
If you are already decided that homeownership is right for you, that you are financially prepared, and have settled for a nice property that suits your needs, then you are ready to take action and secure it. Here is what you need to know to proceed safely through the process:
1. Why Use a Mortgage Consultant
By approaching one or more lending institutions, restricting themselves to the choices of offered in-house mortgage products, many potential buyers miss out on a wide range of mortgage options. Some of those missed options could suit your needs much better and save you a great deal of money. There are hundreds of mortgage possibilities that are available to Canadians today. This includes credit unions, chartered banks, and trust companies, as well as other sources of funding such as life insurance companies and pension funds. Those options will rarely be made available since buyers comparing different mortgage types and interest rates tend to find this process tiring and intimidating. A mortgage company has the necessary expertise and valuable access to the wide range of mortgage lenders and their various products. We are capable to guide you directly to the mortgage that suits your specific financial needs, saving you time and effort in the process.
2. Are there Fees Involved With Hiring a Mortgage Consultant?
In most cases, there are no fees involved. Mortgage brokers receive a fee from the lending institution that provides the funds for your mortgage application. Fees may become necessary only if you do not qualify normally due to poor credit, questionable job stability or other factors. In such cases there can be an expected brokerage fee, which will always be discussed prior to proceeding with the application.
3. Waiting for the Mortgage to Mature - is it a Good Idea?
It is best to get your broker shopping for an interest rate at least 120 days before your mortgage reaches its renewal. Most lenders will guarantee an agreed-on interest rate approximately 120 days before your mortgage matures, making the wait unnecessary. Unless you are increasing your mortgage, lenders will simply agree to cover the costs of transferring your mortgage. A rate will be promised and secured well in advance of your maturity date. This eliminates any worries about higher rates, and if rates do drop before the actual maturity date, most lenders will have no problem with adjusting the interest rate to the lowest it has been during the 120 days period from the date when the application was submitted.
4. Mortgage Loan Insurance.
Mortgage loan insurance is a protective measure provided by the Mortgage and Housing Corporation of Canada. It is also offered by Genworth Financial and AIG United Guaranty. This is required by law to protect lenders against defaults on mortgages with a loan to value volume of 80% or more. The insurance premiums are paid by the borrower and can be added directly into the mortgage total, and included in the premium payments.
We hope this helped you get a better idea of how this all works. Read on for more information or call Super Rates and get qualified professional help from one of our financial advisors. Your dream home may just be a call away!