Ottawa reduces max mortgage amortization to 25 years

Do you really need a mortgage broker? I have used brokers in the past but they were usually for projects that had a risk factor. For personal use I just go to my bank where I have a credit history.

 

I think if I were starting fresh at this point, I would get a copy of my credit report, make a list of my assets and liabilities, dust off my last couple of tax returns and make up an email package.

 

I would then go online and compare mortgage rates of financial institutions and rate them on their products. I would then call up local branches, have a short conversation with the mortgage officer there and get their email address.

 

Now you are dealing with the person(s) that will lend you the money and you have the opportunity to ask questions and compare products. You will most likely find that there are a lot of more options out there than you thought. 

If you are approved why offer to wrap the liability noose on someone else? Makes no sense unless the rate changes materially.

Do you really need a mortgage broker? I have used brokers in the past but they were usually for projects that had a risk factor. For personal use I just go to my bank where I have a credit history.

 

I think the days of your bank offering you a preferred rate because you're a loyal customer are over.  

 

Theoretically you should be able to get a better rate without a broker since there's no middle man to pay, but I think this is extremely difficult in practice.  Banks don't want to pass on the commission savings they would have paid a broker to a customer.

In fact banks often offer their lower rates ONLY through the broker channel.

Why is it that there are so many mortgage brokers? Years ago there was no such thing and now every second* person I know is a mortgage broker.

 

Is this a convenient way of explaining sketchy income or something?

 

*Possible VHF stat

Either a mortgage broker, "life coach" or a "consultant".

Years ago we used a mortgage broker who sniffed out the best deal for us. The last couple of times our credit union gave us a preferred rate, no need to shop around.

Matt.

...Years ago we used a mortgage broker who sniffed out the best deal for us. The last couple of times our credit union gave us a preferred rate, no need to shop around....

This was pretty much exactly my experience. When I last went to renew my mortgage, my broker was not able to secure a better rate than what was being offered by my existing lender.

Edited by Nparker, 20 June 2015 - 08:43 PM.