Nothing delays the first step in buying a home quite like the decision over whether or not to use a mortgage broker. Thankfully, that potentially costly procrastination comes from a lack of information and can be abated with, well, some helpful intel.
We understand the initial trepidation. When you hear broker, you may hear middleman. That connotation alone can have you imaging unnecessary commission costs that can be cut without. But when it comes to a mortgage, this is not the case, not when you have the right broker. But in order to identify that broker, you first need to know why it is so very important to find one in the first place. This is no more true than right here in Alberta. Let’s get to it.
4 Reasons Why You Need to Use a Mortgage Broker When Buying a Home in Alberta
1. Mortgage Brokers Don’t Work for Banks, They Work for You
If you’re unsure about using a broker then you may not fully grasp what it is they (we) do, and who they (we) are. Here’s the most important part – unlike loan officers (who you should be worried about) mortgage brokers don’t work for banks. Let’s hammer home this point. A loan officer is not there to help you. Without question, they unequivocally have the financial institution’s best interest in mind. Ever see a bank loan officer portrayed in a good light in a Hollywood film? There’s a reason for that.
On the flip side of the coin (your coin) is the mortgage broker. A licensed broker operates independently so that they can help you and you alone. Their success is tied to yours. They answer your calls and call you to check in with updates. They are accessible and available because they protect and serve your household. One of the best parts of this relationship, is that you never have to deal with the intimidation factor of stepping into a bank. Your broker will manage the bank for you. That alone is one of the biggest reasons Albertans today prefer to work with a broker.
2. Lower Mortgage Rates
You may have naysayers in your ear whispering about broker commissions. Their cousin is probably a loan officer at the local bank and needs a big break. You see, broker commissions/fees are nothing when compared to what a reputable broker will save you on mortgage rates. A broker that has been around the block a few times has unmatched access to multiple lenders. Because of this, they uncover rates that have not been advertised or broadcast to the Alberta public. Those rates are often significantly lower than those marketed by provincial banks or credit unions. A lower rate provides the ROI you need today and well into the future.
3. A Tough Negotiator in Your Corner
Can you negotiate a mortgage on your own? You bet. You can also represent yourself in the court of law. Is that a good idea? It cost Kramer hundreds of thousands against big tobacco, it can cost you against big banks too. Instead, you need a professional to negotiate for you. That professional is a mortgage broker. In addition to the rate, there are a barrage of additional fees that you may have to pay through the mortgage process. There are appraisal fees, legal fees, deed fees, discharge fees, transfer fees, potential penalties, and so forth. Many (or all) of these can be negotiated by your broker.
4. Today’s Alberta Economic Market is Unlike Any Other and Must be Managed with Expert Care
It’s no secret that the province has come out of a couple of trying years. Entering into a mortgage at this juncture can be concerning. But it doesn’t need to be. A professional broker that is expertly versed in the economy knows what to look for, and look out for. They know when to strike and capitalize so that in five or ten years from now, you as their client can be among the few that got in (or back into) the market when the getting was good, reaping the rewards of a bright future in the process. For instance, our own team has noted that now (2017) is the perfect time to enter into a mortgage in Alberta. This is because of economic conditions, not in spite of them. Confused about whether or not a fixed or variable rate is best given the state of the economy? We have your answer for that too. Whatever keeps you up at night when it comes to the mortgage decision, a reputable broker will put to rest.
Contact the Dan Heon Mortgage Team today and let your next tough decision be in regards to curtains and paint color schemes for your new home.