Before you buy a home, you need to get a mortgage. And it’s often better to get one from a mortgage broker because he or she will shop around for the best deal for you.
You can get an Edmonton mortgage broker or a Calgary mortgage broker if you live in either of Alberta’s two largest cities. One broker you can contact is Ryan Jejina of CanWise Financial (a Ratehub.ca company). We spoke with him about the benefits of using a mortgage broker and much more:
Q. What sets CanWise apart from other mortgage brokers?
A. CanWise uses multiple lenders, which allows us to find the best financing options for our clients. We also do number of high-volume mortgages, allowing us to offer the most competitive mortgage rates in the industry.
Q. What’s the advantage of using a mortgage broker versus a bank?
A. Each lender has their own qualifying criteria. Certain applications may not meet one lender’s qualifying guidelines; however, a second mortgage lender may not have any issues with the application. Brokers have access to many different lenders so there’s a higher chance of finding a lender who will provide financing. If you don’t meet your bank’s guidelines, the application may be declined.
Q. What are some common misconceptions about mortgage brokers?
A. Many people believe mortgage brokers offer mortgages that have hidden terms and fees worked into the mortgage. They also believe some lenders we set them up with may go bankrupt and are uncertain what would happen with their mortgage. At CanWise, the bulk of our business is with A lenders [prime lenders], which are large banks and the largest non-bank lenders in Canada. Often, we can offer bank rates lower than the bank can offer.
Q. What should people be looking for in a mortgage broker?
A. Make sure the mortgage agent has positive reviews online, responds quickly, and is able to answer all of your questions.
Q. How is the market you serve different than other markets?
A. The Alberta market is going through a slow period so we have to make sure we are offering top notch service to our clients. We follow up with all previous clients to ensure we can help them up in the future with mortgage renewals or refinances.
Q. What’s the most common problem clients come to you with? What advice do you give them?
A. Many clients come to us for a second opinion when they get a renewal offer from their current lender. We always advise to shop around for the best rates when you are within 120 days of your mortgage renewal. Banks usually offer much higher rates on renewals as they believe clients will not want to requalify for a mortgage with a new lender. We make the renewal process easy and can often save the client thousands of dollars in interest over the new term of their mortgage.
Q. What do first-time homebuyers need to keep in mind when saving for their first home?
A. First-time homebuyers should try to reduce the amount of debt they have prior to acquiring a mortgage so they are able to qualify. Credit card and line of credit balances, as well as car loans, can play a huge factor on how much a client can qualify for. We have to multiply any balance by 3% and add the payment to liabilities. By reducing these balances, a client can ensure they will be able to qualify for their dream home.