We all tend to be prone to overreaction. All you need to do is turn on the news to find out the latest apocalypse du jour. Of course, the vast majority of these expected calamities that we get ourselves worked up about never in fact show up in our lives. Let’s face it; we are a bunch of Chicken Little’s running around shouting about the falling sky. One recent example of this is the media’s incessant shouting about the skyrocketing of mortgage rates of late.

Well, relax a little my friend, because I am going to lay out for you that perhaps this hysteria is overblown, and you aren’t going to have to remortgage your next house at 30% interest.

First of all, you must understand that while for a short period the rates on a 30 year fixed mortgage did indeed dip below 5%, you couldn’t find anyone anywhere that knows anything about the mortgage industry that said this was going to be a long term sustainable rate. Furthermore, keep in mind that mortgage rates are always in flux and are continually moving around. The only thing that is certain is that going forward is that mortgage rates will fluctuate.

Second, it may be helpful to fill you in on what has caused the movement in the rates and what we can expect going forward. With the massive purchasing of mortgage-backed securities in many countries as well as plunging stock markets driving the rates of the bond market downward, we simply went through a period of abnormally low mortgage rates. However, the recovery is afoot. Several large banks are already beginning to pay back the bailout money they received. Also, the stock market seems to have stabilized to a significant extent.

So, what can you as a consumer do to mitigate having to deal with a quickly rising mortgage rate environment? Well, the first thing to consider is working with an independent broker instead of an employee at a bank. Simply put, a broker will have much more flexibility to relock a mortgage rate for you if a lower rate becomes available prior to your closing date. Conversely, a bank employee will normally not have this flexibility. This allows you the enviable position of being able to be protected against further rate hikes without having to commit yourself if rates go down.

Finally, if you have found the right property, avoid trying to wait for the “exact perfect” moment to secure your financing. You will do nothing but drive yourself crazy and potentially lose out on a property that would meet your needs perfectly.

If you weren’t prone to overreaction, you wouldn’t be a little thing we like to call “being human”. But please, try to keep things in perspective. The media has an agenda, which is to put sensationalistic programming on so that you feel like you need to tune in.

Unfortunately, they don’t tell you the whole story, which in many cases causes undue stress for people. Don’t let this happen to you. Work with an experienced, objective mortgage broker to simplify your life and remove as much doubt and worry from your life as possible. Oh, and go have a pint as well. That always helps.

*article also submitted at ezinearticles*

Related posts:

1. Current Mortgage Rate Tips – How Current Are They?
2. Current Mortgage Rates – Keeping Track of Current Mortgage Rate Helps
3. California Current Mortgage Rate – Finding the Best Rate Can Be Fun

]]> http://www.mortgagebestrate.net/current-mortgage-rate-fluctuations/feed/ 0 http://www.mortgagebestrate.net/how-much-can-i-borrow-to-get-a-mortgage/ http://www.mortgagebestrate.net/how-much-can-i-borrow-to-get-a-mortgage/#comments Wed, 17 Nov 2010 11:32:22 +0000 admin http://www.mortgagebestrate.net/how-much-can-i-borrow-to-get-a-mortgage/

Well the answer is of course it is dependant on your individual circumstances. The mortgage market has certainly changed in the last eighteen months to two years. The credit crunch has reigned in the frankly ridiculous amounts mortgage lenders were offering; I doubt we will ever see 125% mortgages again. Lenders are being much more cautious, lending only to those that meet its strict lending criteria. You can no longer expect to get away with a small default. If you have missed your credit card or mobile phone payment by a few days this will be enough for a lender to deem you as too risky. However on to the point, to find out how much you can borrow you could have a look at one or two of the recognised and respected online financial portals. To find out exactly what you are able to borrow will require you to get quotes from real lenders or go through a mortgage broker. The latter can find out what different lenders are willing to offer you, find out what products meet your circumstances as well as answer any queries you may have. Find a whole of market broker meaning they will search every deal on the market for you so you can ensure you are getting the best deal. If you do want a rough estimate of how much you can borrow there are many mortgage calculators available on the internet that will take your income plus if applicable your partner’s income to give you a figure of the likely figure lenders will offer you. As I mentioned when you get a full quote it will depend on your circumstances and it will vary from lender to lender so it is worth shopping around to see what each lender will offer. As the banks positions in the market have changed a fair amount many are able to offer much more competitive deals that those trying to fix their balance sheet. how much can I borrow is asked by many, mortgage lenders may also be able to give you a better idea or offer advice on the amounts available to you after you explain your situation in detail.

No related posts.

]]> http://www.mortgagebestrate.net/how-much-can-i-borrow-to-get-a-mortgage/feed/ 0 http://www.mortgagebestrate.net/if-mortgage-rates-can-fall-through-the-floor-of-the-prime-rate-what-else-is-under-the-floor/ http://www.mortgagebestrate.net/if-mortgage-rates-can-fall-through-the-floor-of-the-prime-rate-what-else-is-under-the-floor/#comments Sun, 24 Oct 2010 11:31:03 +0000 admin http://www.mortgagebestrate.net/if-mortgage-rates-can-fall-through-the-floor-of-the-prime-rate-what-else-is-under-the-floor/

If Mortgage Rates Can Fall Through the “floor” of the Prime Rate…what Else is Under the Floor?

Pick the Right Perks for your Adjustable Rate Mortgage

Taking the Guesswork Out of Adjustable Rate Mortgages

]]>

“Lower than prime,” you heard someone say. Like most Canadians, you were probably first skeptical and then confused. We tend to think of the prime lending rate as the invisible “floor” of lending rates. The very best customers can get very close to that floor. It is theoretically possible, we reason, to actually be ON the floor, but not possible to be below it.

Nevertheless, Canadian lenders offer mortgages at prime minus 0.5% to even minus 0.7%. So the floor isn’t the lowest you can go. There’s something under the “floor”. The rate known as “prime” has been the popular benchmark for lending in Canada. When business reporters talk about interest rate movement, they usually talk about what’s happening with prime. But there are other benchmarks in money rates, though they are typically for use by professional money managers. The most significant of these is the Banker’s Acceptance rate.

While “prime” is a set rate which is offered to a lender’s best customers, the Banker’s Acceptance is the rate which financial institutions use to lend money to one another. And it’s typically well below the prime rate. Look for the “Money Rates”section of your favourite newspaper, and you can compare Prime with the Banker’s

Acceptance rates for yourself. “Interesting,” you think, “but why does it matter?” Well, as new lending institutions begin to offer a slate of innovative new loan options, a new mortgage has emerged that is based on the Banker’s Acceptance rate: offering a mortgage rate of 1% over the 3-month Banker’s Acceptance.

If you compared the rock-bottom prime-based variable mortgage rate – prime less 0.5% to 0.7% – with the new adjustable BA-based rate, you would find that the BA-based rate would have delivered significant savings over the past several years, as rates were dropping. There are two reasons for this. Firstly, the BA-based rates have historically been considerably lower than prime. Secondly, the prime rate tends to be “stickier” in an environment where rates are falling. Often, the more fluid, market-based BA rates deliver the rate change more quickly.

Any variable- or adjustable-rate Ontario mortgage is an excellent option when interest rates are either dropping or stable. Not surprisingly, they’ve been a very popular choice in the past few years. There are some rumblings now that rates may begin to increase, but flexible-rate mortgages still remain an excellent choice for those looking to save some interest.

As always, you should consult with a mortgage professional to find the mortgage that suits your personal financial needs. An independent mortgage broker can provide you with information on a broad range of mortgage options from a wide variety of lending institutions, so you can compare features and options at a glance.

And remember, it’s worth taking some time to look beyond prime and explore what’s “under the floor” in mortgage options!

Related posts:

1. If Mortgage Rates Can Fall Through the “floor” of the Prime Rate…what Else is Under the Floor?
2. Pick the Right Perks for your Adjustable Rate Mortgage
3. Taking the Guesswork Out of Adjustable Rate Mortgages

]]> http://www.mortgagebestrate.net/if-mortgage-rates-can-fall-through-the-floor-of-the-prime-rate-what-else-is-under-the-floor/feed/ 0 http://www.mortgagebestrate.net/how-much-does-your-home-loan-broker-intelligence-hypothecaire-earn-four-your-mortgage/ http://www.mortgagebestrate.net/how-much-does-your-home-loan-broker-intelligence-hypothecaire-earn-four-your-mortgage/#comments Tue, 05 Oct 2010 11:31:53 +0000 admin http://www.mortgagebestrate.net/how-much-does-your-home-loan-broker-intelligence-hypothecaire-earn-four-your-mortgage/

Why use a Mortgage Broker in Canada?

Home Mortgage Rates – Employ a Mortgage Broker to Get the Best Deal

Home Loan Purchases – Make Use Of a Calculator Along With a Finance Broker To Assist You to Find a Excellent Loan

]]>

Many people may not realize it, but two things are important to know about home loans (Intelligence Hypothécaire).

1) Mortgage brokers get their commission based on the size of the mortgage, not on the interest rate and

2) Brokers frequently channel all loans to one lending institution to get a volume benefit.

You probably wonder how a mortgage broker (Intelligence Hypothecaire) is paid, since you do not pay him. You are right to be curious, because it is critical to know the motivation of each party to a transaction so you can better understand issues such as conflict of interest, etc.

Brokers have to earn fees and commissions, just as the other professionals you work with, but they are paid by the bank that they place the mortgage (Intelligence Hypotheque) with. This payment is based only on the size of the loan, not on the interest earned on the loan. A $200,000 loan will earn twice as much in commissions as a $100,000 loan.) So there is no reason for the broker to increase the rate, and he has no control over the size of the mortgage.

Outside of a few special situations, the broker cannot change this arrangement. These are the circumstances in which the fee will change depending on certain criteria:

-The length of the term of the mortgage- hypotheque

-Some variable mortgages

-The length of time the mortgage rate is guaranteed for.

Therefore, the interest rate is not a determining factor for the fees of the mortgage consultant – courtier hypothecaire . This is different from some of the bonus plans that banks have for their employees. (See “Will my bank offer a better rate than a broker?” to understand this better).

Brokers can, however, improve their fees by working with one bank. Lending institutions frequently offer special programs whereby a broker will earn additional commission based on the volume of home loans he brings to the bank. It is an important amount, ranging from 20% to 25% over the original fee.

A plan like this will only appeal to smaller brokers, since large brokers meet the volume discount levels quickly. A broker like Mortgage Intelligence who typically generate more than $8 billion in loans (for example $8.1 billion in 2005) or Multi-Pret/Mortgage Alliance who generates over $5 billion ($5.3 in 2005) are not guided by volume programs, and can choose any lender they please.

What does this interesting information teach us about negotiating our mortgage through a broker? Number one, that brokers make their commissions only through the size of the mortgage, so differences in interest rates are not going to affect them and number two, dealing with a large mortgage consultant will increase the number of banks that your loan will be presented to, since large brokers have no incentive to stick with one bank in order to obtain a volume bonus.

Related posts:

1. Why use a Mortgage Broker in Canada?
2. Home Mortgage Rates – Employ a Mortgage Broker to Get the Best Deal
3. Home Loan Purchases – Make Use Of a Calculator Along With a Finance Broker To Assist You to Find a Excellent Loan

]]> http://www.mortgagebestrate.net/how-much-does-your-home-loan-broker-intelligence-hypothecaire-earn-four-your-mortgage/feed/ 0 http://www.mortgagebestrate.net/mortgage-security-not-that-costly/ http://www.mortgagebestrate.net/mortgage-security-not-that-costly/#comments Thu, 30 Sep 2010 12:39:19 +0000 admin http://www.mortgagebestrate.net/mortgage-security-not-that-costly/

Mortgage Security not That Costly

Fixed or Variable-rate Mortgage?

More Canadians are Turning to Mortgage Brokers

]]>

Forget everything you thought you knew about the benefits of taking a variable-rate mortgage instead of locking in for the long term.

A new study suggests the security of a five-year mortgage costs little or nothing beyond a riskier variable-rate mortgage, providing you get a jumbo-sized rate discount.

“Interest costs on discounted closed five-year mortgages have been close to, and often lower than, those of variable-rate mortgages since late 1996,” senior Canada Mortgage and Housing Corp. economist Ali Manouchehri writes in the study.

Homeowners have made variable-rate mortgages hugely popular in the past few years in the belief that you can save on interest costs by pegging your mortgage rate to your lender’s prime lending rate. As the prime rises, or as has generally happened in the past few years, fallen, so goes your mortgage rate.

The prime rate at the major banks is now 4.5 per cent, while the posted five-year rate at the big banks is 6.15 per cent. In just one year, the variable-rate choice would save you about $1,700 on monthly payments toward a $150,000 mortgage amortized over 25 years (assuming a level prime rate).

Historically, you would also have saved a lot. The CMHC study shows that five-year mortgages taken out from 1993 through 1998 would have cost anywhere from $50,000 to $5,000 in additional interest paid over the term of the loan (the example is based on a $100,000 mortgage amortized over 25 years).

The flaw with this analysis is that it doesn’t reflect real-world mortgage pricing. These days, very few people take out a mortgage without a sizable discount off the posted rates at major banks.

For that reason, the CMHC’s Mr. Manouchehri decided to compare discounted five-year mortgages with discounted variable-rate mortgages. Incidentally, five years is the most popular term by far for fixed-rate mortgages at about 59 per cent of the total.

The size of the discounts Mr. Manouchehri applied was based on the difference between posted major bank rates and the best deals available from other lenders. For five-year mortgages, he used a discount of 1.25 of a percentage point; for variable-rate mortgages, it was 0.4 of a point off prime.

For five-year mortgages taken out between 1993 and mid-1996, the five-year mortgage was costlier in terms of interest costs. Since then, however, variable-rate mortgages have generally been a little bit more expensive.

Obviously, there’s nothing in this study that decides the fixed-rate versus variable-rate debate once and for all.

In fact, the CMHC study may just confuse anyone who recalls some research done for Manulife Financial back in 2000 by York University finance professor Moshe Milevsky. His research found that the extra interest charged on a five-year mortgage would have cost $20,000 on average between 1950 and 2000 for a $100,000 mortgage amortized over 15 years.

To make some sense of the variable-rate versus five-year question, let’s go back to the CMHC study.

It shows that five-year mortgages, discounted or otherwise, were especially bad choices for a three-year period starting in mid-1993. Rates were high for a while back then, but they subsequently fell.

You were a spectator to these rate declines if you were stuck in a five-year mortgage, while people in variable-rate mortgages would have benefited almost immediately.

It’s a different world now, though. Five-year mortgage rates are close to a 50-year low, which suggests they’re far more likely to rise over their term than fall.

So what’s the best choice here, variable-rate or five-year fixed rate? People who want to pay rock-bottom mortgage rates for as long as possible will probably still want a variable-rate mortgage. Remember, you can lock this sort of mortgage into a fixed term without penalty in most cases.

The case for the five-year term looks almost as strong, though. First, the CMHC study tells us there may not be a significant cost to locking your mortgage in for five years, and you might even save a little over a variable-rate mortgage.

Second, the likelihood of higher rates in the years to come would suggest that this is a good time to lock in.

If you had a variable-rate mortgage discounted to 4 per cent, the prime would have to go up by 0.85 of a percentage point to equal the current five-year rate. That’s not a lot of ground to cover in the span of 12 to 18 months when the economy is doing well.

Arguably, the variable-rate versus fixed-rate debate is all about risks and rewards. Right now, the five-year option offers much less risk, and almost as much reward.

Related posts:

1. Mortgage Security not That Costly
2. Fixed or Variable-rate Mortgage?
3. More Canadians are Turning to Mortgage Brokers

]]> http://www.mortgagebestrate.net/mortgage-security-not-that-costly/feed/ 0 http://www.mortgagebestrate.net/why-use-a-mortgage-broker/ http://www.mortgagebestrate.net/why-use-a-mortgage-broker/#comments Sat, 31 Jul 2010 12:30:05 +0000 admin http://www.mortgagebestrate.net/why-use-a-mortgage-broker/

Mortgage Brokers in Australia

Make a Mortgage Broker Part of your Financial Plan

What exactly is a Mortgage Broker and Why Should I Use One?

]]>

The main reason people go to mortgage brokers is to get access to a greater range of mortgage options, for better service and for the mortgage broker’s ability to negotiate with lenders. A mortgage broker offers loans from a panel of financial institutions, including banks and non-banks. Using a mortgage broker is now an essential part of scouring the market for theageview(‘/outgoing/article_exit_link’);” rel=”external nofollow” target=”_blank” href=”http://www.xinc.net.au/home_loans/pick_your_home_loan.html”> right home loan. In simple terms, brokers evaluate your situation against secure banks and lenders on their panel for the best deal. On top of this a mortgage broker will collect and collate your loan application and liaise direct with the lender on your behalf – no more holding for your bank just to be told by a machine to select from options 1, 2, 3, etc.

In Australia, along with the well known banks and lenders there are now a whole range of specialist lenders offering a range of competitive products which may be more suitable to your needs. One of the great advantages of using a good mortgage broker is that they have access to many of these lenders and their products.

mortgage brokers usually run their own businesses. Lenders work with mortgage brokers because they effectively give the lender a bigger “shop front” without carrying a traditional employee or “bricks and mortar” overhead. The lender pays the broker fees or commissions for your business. Just as if you were dealing with a bank manager or lender, these fees do not change the interest rate you pay on a home loan. To be sure you are being recommended to the right lender, just ask your mortgage broker to show you all the lenders on their panel, and what your loan options would be, to compare against each lender’s criteria. Some mortgage brokers will be able to provide a graph comparison based on your loan amount and the different lenders rate fees and charges over the life of the loan. This will give you an overall ‘cost ‘ of each loan available including interest charged over the term of the loan.

Establishing that a mortgage broker is right for you and has experience and qualifications, as well as being committed to the industry code of practice, is vital to ensure you’re getting the best loan for your needs. Here is a step-by-step checklist that will help you know if your broker is on the level.

· For residential loans, all of the mortgage broker’s services should be free i.e. is the whole service of giving you information in relation to home loans, negotiating the loan for you and handling the paperwork through to approval

· The right mortgage broker will take the time to really understand your entire finance situation, both now and into the future

· Your mortgage broker should have a range of home loans from a wide variety of lenders, e.g. banks and non-banks, conforming and non-conforming

· Ensure your mortgage broker is not just an agent for one lender

· Check the qualifications and experience of your mortgage broker, are they a member of the professional mortgage association (MFAA – Mortgage & Finance Association of Australia / FBAA – Finance Brokers Association Australia)?

· Make sure your mortgage broker discloses all commission and payments received so you can judge whether a particular loan recommendation is being influenced by how much the broker will be paid

· Ask your mortgage broker to show you on their computer how the loans they offer compare for your situation. Good brokers should have the appropriate software and be able to clearly outline their criteria and logic

· Your mortgage broker should have appropriate insurances

· A good mortgage broker should be able to explain the most complex loans in plain English

· It is up to you, but it really helps if you actually like your mortgage broker as well!

Related posts:

1. Mortgage Brokers in Australia
2. Make a Mortgage Broker Part of your Financial Plan
3. What exactly is a Mortgage Broker and Why Should I Use One?

]]> http://www.mortgagebestrate.net/why-use-a-mortgage-broker/feed/ 0 http://www.mortgagebestrate.net/mortgage-brokers-in-australia/ http://www.mortgagebestrate.net/mortgage-brokers-in-australia/#comments Sat, 31 Jul 2010 12:30:00 +0000 admin http://www.mortgagebestrate.net/mortgage-brokers-in-australia/

Accreditaion for Mortgage Brokers

More Canadians are Turning to Mortgage Brokers

Why Use a Mortgage Broker

]]>

Mortgage Brokers In Australia most people go to mortgage brokers to get access to a greater range of mortgage options, for better service and for the mortgage broker’s ability to negotiate with lenders. A mortgage broker offers loans from a panel of financial institutions, including banks and non-banks. In Australia there are literally hundreds of lenders with many options, that were traditionally available in the past and competition amongst lenders for customers is fierce with new home loan products available every day. Using a mortgage broker is now an essential part of sourcing the market for the right home loan. In plain terms, mortgage brokers evaluate your situation against the 20 or 30 lenders on their panel for the best deal. Specialised mortgage lenders offer competitive products to first home buyers, self employed and business people, retirees, new Australians and immigrants, previous bankrupts and people with a bad or poor credit history. One of the great advantages of using a good mortgage broker is that they have access to many of these lenders and their products. The mortgage broker should be able to provide you with the cheapest home loan to the most competitive home loan in the current financial market. The mortgage broker should be able to provide you with at least three options of which lender suits you best. The mortgage broker should be able to explain in detail each home loan product he/she is offering and why they have chosen these home loan options for you. The options the mortgage broker provided is from the information that you have provided to them. This will show if the mortgage broker has done their homework correctly. Mortgage Brokers usually run their own businesses. Lenders work with mortgage brokers because they effectively give the lender a bigger “shop front” without carrying a traditional employee or “bricks and mortar” overhead. Some lenders like Citibank, ING, Macquarie Bank and Heritage have few or no branches and partly rely on mortgage brokers to represent their products. Other lenders like CBA, Westpac, ANZ, NAB and St George have their own branch networks, but simply extend their access to Customers through the mortgage broker network. The lender pays the broker fees or commissions for your business. Just as if you were dealing with a bank manager or lender, these fees do not change the interest rate you pay on a home loan. To be sure you are being recommended to the right lender, just ask your mortgage broker to show you all the lenders on their panel, and what your loan options would be, against each lender’s criteria. What a Broker should do for you When you first meet with a broker, they should always start by asking you to explain your entire finance situation, including future plans. Little things can make a big difference to making sure you get the right home loan for your situation now and with flexibility for future changes. Have your key documents on hand to refer to when meeting with the broker so you can give the most accurate details to ensure you get the right home loan. Your Mortgage Broker should: Discuss and confirm loan scenarios and options in writing Explain all documents of the loan application and assist in completing the loan application Explain the loan process, from start of the application to closing Explain all associated costs, fees and disbursements of the loan application Communicate with you throughout the loan process Follow up the lender for you from application through conditional and on to unconditional approval Negotiate with their lender or lenders to achieve the best deal How do I know a mortgage broker is any good? Establish the right mortgage broker for you and check his/hers experience and qualifications. A good mortgage broker will be committed to the industry’s code of practice. It is vital to ensure you’re getting the best loan for your needs. Below is a checklist that will help you know if your mortgage broker is a good person For residential loans, all of the mortgage broker’s services should be free – remember mortgage broker’s are paid commissions from the lenders The right mortgage broker will take the time to really understand your entire finance situation, both now and into the future Your mortgage broker should have a range of home loans from a wide variety of lenders, for example, banks and non-banks, conforming and non-conforming lenders Check that your mortgage broker is not just an agent for one lender Check the qualifications and experience of your mortgage broker, even ask for references from previous borrowers Is the mortgage broker a member of MFAA – Mortgage & Finance Association of Australia / FBAA – Finance Brokers Association Australia Ensure your mortgage broker discloses all commission and payments received by the lenders Ask your mortgage broker to show you how the loans they offer compare to your own situation (on a computer). Good mortgage brokers should have the appropriate software and be able to clearly outline options requested by you Ask your mortgage broker how they comply with the Privacy Act to ensure security of your personal and financial details Your mortgage broker should have appropriate insurances (for example Public Indemnity Insurance Cover) A good mortgage broker should be able to explain the most complex loans in simple plain English In conclusion you would like to have trust in the Mortgage Broker that you will use. It is important that you take your “gut instinct” when you are choosing a Mortgage Broker. You want to make sure that you like the person and ensure that the Mortgage Broker will do the ring thing for you. It does not hurt to ask the Mortgage Broker for testimonials (what other customer have said about them)

Related posts:

1. Accreditaion for Mortgage Brokers
2. More Canadians are Turning to Mortgage Brokers
3. Why Use a Mortgage Broker

]]> http://www.mortgagebestrate.net/mortgage-brokers-in-australia/feed/ 0 http://www.mortgagebestrate.net/more-canadians-are-turning-to-mortgage-brokers/ http://www.mortgagebestrate.net/more-canadians-are-turning-to-mortgage-brokers/#comments Sat, 31 Jul 2010 12:29:54 +0000 admin http://www.mortgagebestrate.net/more-canadians-are-turning-to-mortgage-brokers/

More Canadians are Turning to Mortgage Brokers

Accreditaion for Mortgage Brokers

Make a Mortgage Broker Part of your Financial Plan

]]>

When it comes to mortgage financing, more and more Canadians are choosing to work with a professional mortgage broker. According to a recent study by the Canada Mortgage and Housing Corporation (CMHC), 23 per cent of mortgages written were arranged through a broker.

Canadians are just catching up with their American neighbors, who are far less likely to simply walk into their home bank for a mortgage. In 2000, almost 70 per cent of all U.S. mortgages were arranged through mortgage brokers.

If we follow the U.S. model – and it seems that we are — then we’re in for a sea of change in the way Canadians manage their most significant personal asset. It makes sense. After all, investment returns aren’t as lucrative as they were five years ago, and investors are seeking out ways to make financial gains through avenues they may have overlooked.

There are some significant benefits to working with an independent mortgage broker. Firstly, let’s compare mortgage expertise: Most banks have one or more representatives who are specifically assigned to assist with mortgages. Their role is to develop mortgage business for the banks. A ontario mortgage broker, on the other hand, is a trained mortgage professional who has met standards for education. The comprehensive training of an independent mortgage broker may exceed the training of their counterparts at the bank. More importantly, the mortgage broker is independent. He or she is not an employee of a lending institution, but has access to rate and option information for a full spectrum of chartered banks and other lending institutions. Their role is to find the best possible mortgage rates and options for you.

Let’s also look at choice: A mortgage broker offers you access to many competitive lenders, each with a range of mortgage options. It would take weeks of research, telephoning and personal visits to recreate the range of features and options that a mortgage broker has at his or her fingertips. Rate information, mortgage options and payment schedules are up-to-the-moment, so you and your broker can make valid comparisons of the options available. The result of all this choice is a mortgage which is customized to meet your needs and to save you money.

Also consider accessibility. Your mortgage broker will be available to you before and after your mortgage closes, which will be good news for those who have spent long hours on hold or in a telephone voice answering loop.

Above all, clients have turned to mortgage brokers for better rates. Access to a broad range of lending institutions is a critical advantage for mortgage shoppers. A quarter-point difference on your mortgage rate can add up to thousands of dollars over the life of your mortgage. Many mortgage brokers work inside a brokerage organization with sufficient mortgage volumes that they can negotiate the best possible rates for your situation. Canadian homeowners who have experienced the benefits of a mortgage broker are unlikely to ever return to a world in which they simply accept the best posted rate at their local bank.

Related posts:

1. More Canadians are Turning to Mortgage Brokers
2. Accreditaion for Mortgage Brokers
3. Make a Mortgage Broker Part of your Financial Plan

]]> http://www.mortgagebestrate.net/more-canadians-are-turning-to-mortgage-brokers/feed/ 0 http://www.mortgagebestrate.net/make-a-mortgage-broker-part-of-your-financial-plan/ http://www.mortgagebestrate.net/make-a-mortgage-broker-part-of-your-financial-plan/#comments Sat, 31 Jul 2010 12:29:53 +0000 admin http://www.mortgagebestrate.net/make-a-mortgage-broker-part-of-your-financial-plan/

Make a Mortgage Broker Part of your Financial Plan

More Canadians are Turning to Mortgage Brokers

Accreditaion for Mortgage Brokers

]]>

For most Canadians, buying a home is the largest financial decision they will make in their lifetime. Yet, consumers across the country are more likely to painstakingly review dozens of investment possibilities for their portfolios than to scrutinize their mortgage choices. The mortgage world – like the investment world – can sometimes be confusing. There is a vast array of choices – open, closed, fixed, floating, long or short amortization, prepayment options, portability… and of course, the rate itself.

Making the right mortgage decision can have a huge financial impact over the long term. Many Canadians have an investment advisor to help them sort through their choices. Now, Canadians are also beginning to turn to mortgage brokers to help them make better mortgage decisions. Canadians are just now catching up with their counterparts south of the border, where mortgage brokers already arrange approximately 70 per cent of mortgages for U.S. properties.

So what is a mortgage broker? The role of a mortgage broker is to understand your mortgage needs, seek out the best options for your situation, and guide you through the lending process. A mortgage broker does not work for any individual institution or lender, but is independent, and has up-to-the-minute loan rates for a wide array of banks and other lending institutions.

There was a time when the banks exercised the view that they “owned” their customers, and mortgage brokers were perceived only as a last resort for home buyers with poor credit history. But times have changed, and home buyers in every bracket are learning they can benefit from the professional advice of a mortgage broker.

A good investment advisor can make you thousands of dollars. But a good mortgage broker will SAVE you thousands of dollars. Whether you are buying a home or renewing a mortgage, consider making a mortgage broker part of your financial plan this year.

Related posts:

1. Make a Mortgage Broker Part of your Financial Plan
2. More Canadians are Turning to Mortgage Brokers
3. Accreditaion for Mortgage Brokers

]]> http://www.mortgagebestrate.net/make-a-mortgage-broker-part-of-your-financial-plan/feed/ 0 http://www.mortgagebestrate.net/accreditaion-for-mortgage-brokers/ http://www.mortgagebestrate.net/accreditaion-for-mortgage-brokers/#comments Sat, 31 Jul 2010 12:29:52 +0000 admin http://www.mortgagebestrate.net/accreditaion-for-mortgage-brokers/

Accreditaion for Mortgage Brokers

More Canadians are Turning to Mortgage Brokers

How to select the right mortgage broker

]]>

Mortgage brokers are blossoming in the current environment and are gaining an increasing share of the mortgage market. This is great news because you should consult with a mortgage professional when you’re making one of the most important financial decisions of your life. But, keep in mind, that not all mortgage brokers have the same level of training and experience.

That’s why it’s such great news for Canadians that the mortgage industry now has national accreditation: the Accredited Mortgage Professional (AMP). When you meet with a mortgage broker with an AMP, you’ll be assured that your business is in the hands of a professional.

Canadians are accustomed to purchasing financial products like investments and insurance from an accredited professional. Now they can look for a similar professional designation from their mortgage expert.

Like similar accreditation programs for mutual fund sales people, or stock brokers, the AMP is designed to ensure an appropriate level of training and experience. Mortgage professionals from every field are eligible to acquire the accreditation: from mortgage brokers on the front lines to those who specialize in lending or mortgage insurance, for example.

While the vast majority of Ontario mortgage brokers take seriously the important responsibility that they have to their clients, the designation provides mortgage customers with a tool to help select their mortgage expert. This kind of designation is especially valuable in an industry where provincial regulations vary – and so a variety of practice standards are in place. A single national proficiency standard brings mortgage brokers in line with other financial professionals.

The AMP designation can now offer you confidence that your mortgage broker has industry experience, has taken ethics and industry training, and is committed to a program of ongoing education to retain their designation. In order to qualify for the designation, mortgage professionals must have at least five years experience or successfully complete a recognized mortgage professional proficiency course, and take an ethics training course. They must also commit to a minimum 10 hours of continuing education each year, and agree to be governed by the professional code of the national CIMBL organization.

With a growing number of Canadians now seeking the services of independent mortgage brokers to help them assess their mortgage options – in a $600 billion industry – the timing is perfect. It’s your money, after all, and you should have the tools to make the best possible decision. An independent mortgage broker can offer you the broadest range of mortgage rates and options. Now they can also offer you the added assurance of their newly minted designation: the AMP.

Related posts:

1. Accreditaion for Mortgage Brokers
2. More Canadians are Turning to Mortgage Brokers
3. How to select the right mortgage broker

]]> http://www.mortgagebestrate.net/accreditaion-for-mortgage-brokers/feed/ 0