I was just browsing through First National’s website and found a great little information piece about mortgage brokers. I've been supporting First National since I began mortgage brokering. They are one of my favourite lenders because they have great turnaround times, solid mortgage rates, great broker service and fantastic underwriters. In their broker piece, they list some questions you should ask your mortgage broker before proceeding with them! If they can’t answer these questions to your satisfaction, move on! There are lots of great mortgage brokers out there!
Here are my answers to the questions posted on First National’s website:
1. How long have you been a mortgage broker? 4 years, full time. This is not a part time occupation; it’s my bread and butter!
2. How long has your company been in business? Mortgage Success has been around since the fall of 2008. My broker, Roberta Hardern, was previously a partner at River City Financial Services. She has a long background in mortgage brokering (10+ years) and oversees the day-to-day operation of Mortgage Success.
3. Can I get references from your clients? Yes! Please visit the testimonial section of my website. If you would like further in-depth testimonials please ask me and I would be happy to put you in touch with some of my past clients.
4. How do mortgage brokers make money? We’re paid by the lender that funds your mortgage.
5. What is your experience with this type of transaction? I have lots of experience arranging residential mortgages for first time buyers, self employed individuals, revenue property purchases etc.
6. What is the process for closing my mortgage? This is a long winded one, likely better explained when tailored to your individual situation.
7. How quickly can it be done? It all depends, see above!
8. Which lenders do you work with and why? I work with a variety of lending institutions. I do try to stick mostly with the larger players in the market and ones with solid reputations in the industry. I want you to be happy with your mortgage once you have closed your transaction so I always keep the lender’s reputation and client service history in mind.
Working with a Mortgage Broker (from First National's website)
Today, about 30% of Canadian homeowners arrange their mortgages through mortgage brokers – independent specialists with extensive knowledge of mortgage lenders’ product offerings, their features and benefits, and contacts throughout the lender community to ensure competitive rates.
What can a Mortgage Broker do for you?
Mortgage Brokers are experts dedicated to finding the right mortgage solution and simplifying the mortgage financing process. The Broker will take the time to understand your individual situation and tailor the best solution from among the hundreds of products available to today’s homebuyers. Brokers complete all the paperwork and keep up-to-date on industry issues and changes that could affect the decision you make about which mortgage solution is right for you. A Mortgage Broker will save you time. Comparison shopping involves going from lender to lender repeating your story, asking the same questions and analyzing the answers. That’s time most people don’t have.
On top of that, home financing is highly competitive and each product can be complex, which is why you should have an expert on your side. A Mortgage Broker will also work with you on strategies to manage monthly payments or improve your credit rating.
Questions to ask your mortgage broker: A Mortgage Broker will also work with you on strategies to manage monthly payments or improve your credit rating. As the term "broker" suggests, he or she gets paid a commission when originating or renewing a mortgage, so you don’t pay a thing!
1. How long have you been a mortgage broker? 2. How long has your company been in business? 3. Can I get references from your clients? 4. How do mortgage brokers make money? 5. What is your experience with this type of transaction? 6. What is the process for closing my mortgage? 7. How quickly can it be done? 8. Which lenders do you work with and why? Why use a mortgage Broker? Integrity, industry knowledge and service.