Monday, 17 August 2015

The 10 Questions Mortgage Brokers are Asked

Every day those of us in the mortgage industry (whether brokers, agents, or even bank employees) get asked the same set of questions regularly. Rather than make you try and guess the top 10, I'm gonna leave them here in no particular order!


What's the one thing you always ask your mortgage pro when you run into them? Did it make the list? And if not, send me a message, I'm always interested to hear what you want to know!

1) What is the best rate right now?
  • Because rates change constantly, this is a tough question to answer. It also depends on factors such as your term, type of loan(refinance, purchase, etc.) and borrower qualifications. Contact me or visit my website at www.RyanWSmith.ca and I'd be happy to send you an updated rate sheet and we can discuss the options.
2) What's your lowest 5 year fixed rate?
  • With the 5-year fixed being the most popular mortgage choice, this is the one we get asked about the most. My 5-year fixed rates are around 2.64% at this time, but I have even lower rates than that for certain types of clients. These rock-bottom rates generally come with very few features and may cost quite a bit more in the long run. Here's an article all about 'No-Frills' mortgages.
3) When are rates gong to go up?
  • Good question! While the mortgage brokers crystal ball is always hazy, it is reasonable to say that rates won't likely increase until we see a major rebound or upswing in the Canadian or US economies. With economic growth so slow, the Canadian government will likely try and keep rates low to encourage home purchases. Real estate is a big driver of the economy and a large spike in rates could cause the industry to stall, which would have some serious negative impacts on personal and national finances.
4) How do I choose the best term?
  • Read my article on choosing the best mortgage term HERE. It's a difficult decision and all your options should be considered before jumping on the 5-year fixed rate wagon without exploring what else is out there. 
5) Can I still get a 30 or 35 year amortization?
  • Yes and No. If you have less than 20% down for a purchase, then you will only be able to get a maximum of 25 year amortization. More than 20% down opens up more options, including both 30 and 35 year amortizations, depending on your lender. If you're thinking of putting down less than 20%, read this article on Mortgage Insurance HERE.
6) Why wouldn't I just got to my bank?
  • Mainly because your bank is not a highly trained expert in mortgages. Mortgage brokers do one thing and we do it well; Mortgages. By all means, consider the options available from your financial institution, but remember that the best advice and the most lenders/options will always come from a specialist you know and trust.
 7) What if my bank matches your best rate?
  • My advice: Always read the small print. Or have someone you trust read the small print with you. Lower rates almost always come with higher penalties and more restrictions, so make sure you know what your bank is actually offering. Many of my lenders offer the same rates but with better options for prepayment and lower penalties for early mortgage payout. This can come in handy later if and when life changes for any reason.
8) How much do I qualify for?
  • Check out this article on mortgage prequalification and preapproval. To really answer this question, it's best to contact me so we can sit down and discuss all the parameters that go into determining your mortgage amount. And always remember, what you qualify for and what is a comfortable payment for you may be 2 very different amounts!
9) How do you get paid?
10) My bank wants me to renew early, what do I do?
  • An early renewal may be an option for you, but again you should read the fine print carefully. I always offer completely free mortgage evaluations so bring me your renewal notice and let's discuss it in detail. If you find that the renewal offer isn't your best option, then we can discuss other potential lenders and how to proceed. 
 There are always a million other questions to be had throughout a regular day, what's yours? I'm here and always happy to help, and remember my meetings and evaluations are always free! Contact me today!
 

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