Shopping for a house in Victoria BC is stressful. Housing prices on Vancouver Island and specifically in Victoria BC just keep on going up, in contrast to dropping prices elsewhere in British Columbia.
With house prices so high, choosing the right mortgage is critical. A lot is on the line when selecting a mortgage, since it will most likely be a large if not the largest part of your monthly expenses — and you’ll be paying for years.
So, what is the best way to go about selecting a mortgage? You probably know that you can get a mortgage from a bank if you meet the very strict criteria, but what about mortgage brokers? What does a mortgage broker do? What advantages do they provide?
In nutshell, a mortgage broker is a licensed professional that acts as a middleman to find you the best mortgage at the best rates for your unique situation. They have access to more lenders and borrowing options than a bank does, and because that’s all they do, it is in the mortgage broker’s best interest to get you a good deal. A good mortgage broker is on your side, can take you in hand and help you through the process, acting as your advocate in the market.
There are a number of benefits that a mortgage broker offers that you can’t get from a bank. Most of the benefits arise from the fact that a mortgage broker is working on your behalf instead of selling their own products, which is what a bank does. For remuneration, they are paid a commission by the lenders themselves. This type of business model depends on client referrals, incentivizing mortgage brokers to provide excellent service to their clients.
The mortgage process is complex. A mortgage broker has experience navigating the process, is aware of all the moving parts and how they fit together to get the very best solution for your particular situation. A mortgage broker can help you determine your house-buying goals and your budget so the process is based on a realistic foundation. And once the preliminaries are determined and it’s time to move on to finding an appropriate mortgage, a mortgage broker will manage all the transactional details with the real estate agent, lender, appraiser, credit agency, and lawyers. They take on the hassle so buying a home is an all-round good experience for you.
As mentioned above, mortgage brokers aren’t selling their own products. They are middlemen who have access to numerous lenders that offer a huge array of products. This means many more borrowing options than you would get by going through your bank. Not only are they more likely to find you better rates, for people in difficult situations, such those with bad credit, it may be the only way to find a lender willing to take you on.
Mortgage brokers are dedicated to finding the best mortgage for you. That’s all they do, and they have the training and experience to do it well. They know what lenders are looking for and how those lenders qualify borrowers. They are attuned to be aware of hidden or unforeseen costs or penalties and know how to avoid pitfalls, reducing risk.
Because the mortgage broker is paid a commision by the lender, in most cases you won’t pay any fees directly. In some circumstances a broker fee may be charged, for example if the borrower doesn’t fit into a traditional lending model, and requires alternative lending solutions due to their credit or other circumstances. This fee is disclosed up front to the borrower and is agreed upon in advance. That means that you get expert, unbiased mortgage advice usually for no money upfront.
We advise that you do your homework before choosing a mortgage broker. Regulations in Canada are strict, however there is still room for unscrupulous mortgage brokers to take advantage of a buyer’s vulnerability. Accordingly, when working with a mortgage broker, get everything in writing and be wary of any mortgage broker who asks for large up-front fees.
When looking for a Victoria BC mortgage broker, first of all check the websites of the mortgage brokers in the area. Look at their accreditation, awards and reviews. Look elsewhere online for reviews and ask family and friends for recommendations.
Then contact the ones that look the most promising and ask:
Our team, together, has over 100 years of experience and we have access to over 50 lenders. We regularly procure mortgages for our clients that have challenging situations, such as mortgages for bad credit.We’re confident that if you’re looking for a mortgage broker in Victoria BC, we will be high on your list to contact. Please do! We offer a free consultation and can really dig into how we can help you through the process and find the perfect mortgage for your situation.