When selecting a mortgage broker, it’s important to ask some basic questions in order to determine who is right for you. It’s important to build a good relationship with the person looking after your mortgage. Here is a list of 10 questions you should ask a mortgage broker before engaging in business with them.
1. How long have been in the mortgage business?
The more experience a broker has, the better equipped they will be to handle any situation. An experienced broker should be able to answer any query in an easy-to-understand manner.
2. Where does most of your business come from?
If most of their business is from referrals and repeat customers, you know they are receiving positive reviews and doing a good job.
3. What are your hours of operation and what’s the best method to get a hold of you?
Brokers typically operate independently and can offer extended business hours. If a broker offers you more ways to contact them – the better it is for you. You don’t want a mortgage professional that is difficult to reach.
4. What are your credentials?
Mortgage licensing is handled at the provincial level since there is no national unifying governing body. You can find out what associations govern the mortgage industry in your province by referencing our mortgage brokers section. In addition, it’s important to ask your broker what their educational background is and if they have any special credentials (such as the AMP designation).
5. Can you provide some current testimonials?
If a broker’s past clients have been satisfied, they might have been compelled to share it with others. Ask to see these references and reviews.
6. How do you get paid?
A fully qualified client generally does not have to pay a fee.It is the lender who will pay the broker a finder’s fee for introducing new business.
7. Which lenders do you work with?
As an origination service, brokers should have relationships with multiple lenders. This helps ensure they are out comparing and sourcing the best rates for you. If you notice they lean heavily towards one particular institution, ask them why. You want to make sure they are recommending you to a particular lender for the right reasons.
8. Do you have an area of expertise?
Although a mortgage broker should be able to evaluate any client situation, it’s best to find out if they have any special areas of specialization. This will be useful if you already have an interest in mind (such as HELOC or cash back mortgages).
9. What other costs are associated with purchasing a home?
A broker should be able to provide a good estimate of the costs involved with purchasing a home, such as lawyer fees, CMHC insurance, and other various closing costs. They might even be able to refer you to a real estate agent, lawyer, or financial advisor.
10. Will we still be in contact after the mortgage closes?
A good mortgage broker will check up on their clients a few times a year, keeping them up-to-date with relevant industry news and possibly better options as they pop up.
Finding the right mortgage broker is important because they will be your representative when talking to lenders. A broker will handle all the necessary paperwork, compare mortgage rates for you, and negotiate on your behalf. Mortgage professionals are also a great source of education and industry insights, so a good broker should be able to handle any question you throw at them. Your experience with a mortgage broker should be pleasurable and gratifying.