As 2024 unfolds, Canadian homeowners find themselves at a crucial point in their mortgage – renewal time! In this article, I will explore the current dynamics of the Canadian mortgage market, what to expect when renewing your mortgage, and considerations to ensure a seamless process. If there’s a topic that homeowners are discussing in 2024…Read Article
7 Questions You Should Ask Your Mortgage Broker
Working with a mortgage broker is a different experience than working with a bank specialist. It’s also a different part of the home buying process compared to working with your Realtor. Some people may have never worked with a mortgage broker before and don’t know what to expect.
Because of that, there are some questions you should always ask your mortgage broker. I wanted to shine a light on the questions you should ask during the mortgage process.
Below you’ll find the questions along with an explanation and answers for each.
Do I pay a mortgage broker?
One of the most common questions I get is “do I pay for your services?” This one is a simple question and a simple answer, so I will give it to you! On residential mortgages, I get paid by the bank. On commercial mortgages, I have to charge the client.
So, if you are looking for a residential mortgage, you do not have to worry about paying me. That happens through the bank and doesn’t come from you or your mortgage. With provatre and B mortgages, there can come additional fees that you pay at the lawyer.
How are banks and brokers different?
This is also a very common question that I get asked! A lot of people assume that working with a broker and a bank is the same thing, but it is not!
I actually wrote a full in-depth article on this topic that you can read on this topic.
Can you lock in rates for me?
Another question that you should ask is whether or not I’m able to lock in a rate for you during your home buying process. Especially if rates are fluctuating, this is a great option to secure a rate for a certain amount of time while you look for your dream home.
What are the closing costs?
When it comes to closing costs, it will depend on your specific loan for actual numbers. But, your loan is divided into two stages. One where you pay your interest and another where you repay your mortgage. You will also be responsible for other fees such as an appraisal, legal costs, property transfer tax, etc.
When we work together, we can go through each of the costs associated with the home you’re looking to buy so you’re aware of all of the costs and what they will be.
I recently wrote a whole article on closing costs that you can check out as well.
Which mortgage type should I get?
This question is a very important one and will vary greatly depending on your situation. There are many options when it comes to mortgages. Variable? Fixed? How long of a fixed term? What amortization is best? Which interest rate is best?
All of these questions will relate to which mortgage type you should get. When you work with me, I will go through your situation and see what you will get approved for. Then, based on what you can get approved for, we can discuss your mortgage loan options and which mortgage type is best suited for you.
What are the fees for breaking a mortgage early?
There will be fees associated with breaking your mortgage early. These fees will be determined by your lender and will vary on how much of a mortgage loan you have and how much is remaining.
If you’re looking to break your mortgage early, please reach out to me to discuss. I can go over your options, the costs associated with it and see if I’m able to find you a different/better option. If this is something on your mind, the sooner you reach out to me, the better!
Is there anything I should avoid doing before my closing date?
The short answer is YES. There are several things that you will need to avoid doing before your closing date. Let me share a few with you here.
- Keep your money where it is unless we’ve discussed moving money around in your accounts. Also, do not close any bank accounts during the mortgage process.
- Do not apply for anything with additional credit or loans. This includes buying a new truck, trailer, boat, etc. We do not want you to add to your debt ratio and if you do, you may not be approved for your mortgage any longer. If a purchase is necessary, please reach out to me to discuss before moving ahead.
- Don’t change your jobs! If you change your job, you may not qualify for the same mortgage amount. The same as above applies. If this is something in the works or a thought, please reach out to me. When you change jobs, you have to be off probation to use the income to get approved, which could cause huge delays in your mortgage.
Let’s get started today!
Now that you know the top 7 questions to ask, it’s time to ask them and go through them specific to your situation! Give me a call at 250-826-3111, apply on my website or contact me through my online contact form. Whichever way you reach out to me, I look forward to chatting with you and helping you make your home buying dream a reality.