People always ask me, “Why use a mortgage broker, or why would I use a mortgage broker instead of my bank?”
While, that is a great question and I will answer it with examples of situations where a broker will be more useful than others. A mortgage broker becomes more useful the more complicated your situation is. For example, if you are a full time employee with little debt, great credit and your own saved up down payment we will be able to help you but you would be considered a simpler situation. (Mostly we could offer you the best rates in the market.)
Whereas someone who is self employed, owns an owner occupied and two other homes and has some debt would be a little more complicated.
With the latter client we would be able to give them their best options as different banks have more tolerance for self employed individuals and add in that they have rental properties narrows the list of best banks for this client considerably.
Other situations such as a client purchasing a home from a relative and getting gifted the equity as a down payment will have certain banks that are better for this more than others. Some will charge a higher rate or straight up will not allow it whereas some will be completely fine with it and offer best rates.
One of the tougher ones that brokers are able to help with is clients who have had past credit difficulty such as a bankruptcy or consumer proposal. As long as these clients have had two years discharged from bankruptcy with two separate sources of credit re-established, preferably one being a credit card with a limit of $2000 or more we will be able to help in most cases.
Every case is different with past credit issues but one way or another we will be able to help.
Last example I will go through will be with client new to the country. As long as they are here within 5 years and have either a work permit or permanent residency card, they will be allowed to get a mortgage with as little as 5% down.
They don’t even have to have credit established yet but it makes it easier if they do.
Hope this helps and please contact me with any questions,
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