Randy Tokai Calgary, AB

Hi Karen,   And I'm glad I finally worked my mortgage through a broker instead of the bank and now I'm wondering why haven't I done that before? There is a lot of misconceptions about mortgage brokers among the public, and I think mortgage brokers and their clients need to get the right word spread out there. The money I saved in interest over the next three years and the money going more towards my principal by getting a lower rate than the bank gave me is the smartest thing I've done in years. I know my contact at RBC will be upset with this, but hey she does what is in the bank's interest and I do what is in my family's interest. And from now on I only deal with a mortgage broker not banks. And thanks for enlighting me about having one broker not more. All the best.

HAIDAR ALMOUBAYED Calgary, AB

CURRENT MORTGAGE RATES Last updated:  Jan 18, 2012 Term Bank Rate Our Rate 6 month 4.55% 4.55% 1 year 4.30% 2.75% 2 years 3.89% 2.99% 3 years 3.99% 3.19% 4 years QC 4.79% 2.89% 5 years 5.29% 3.29% 7 years 6.29% 3.99% 10 years 6.69% 3.89% 1 year open 6.30% 6.30% Prime: 3.0% * rates subject to change without notice    .

What is a Mortgage Broker?
Mortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs. We are transactional facilitators. This means we help connect borrowers with lenders.  It's our job to get to know you as the borrower, get to know what your needs are, understand your financial situation; and with that information, find the best-suited lenders to help fulfill your needs.

I have applied with more than one Broker to make sure I get the right mortgage?

When you apply to more than one broker you are having more than one credit bureau pulled which will affect your credit score.  All Brokers have the same lenders so if you have applied with more than one you should pick which one you feel comfortable with and cancel your other applications.  Brokers have received declines because there has been more than one application from the same customer. Lenders and insurers do not like when this happens and you are wasting a lot of valuable time that is not necessary. Look at their experience and their knowledge to ensure they are qualified to represent you.

Why deal with a Mortgage Broker instead of going to a Bank?
Mortgage brokers represent you, the customer, not the lender. Because they are not employees of a lending institution, brokers are not limited in the product they can offer you. Mortgage brokers seek out the best lender package to suit your specific situation, whether iit’s with a Chartered Bank, Trust or Insurance Company, or Private Funds.

 More products, more money sources, more options.  Banks can only offer their own financing products, which may or may not provide the borrower with the best rate for their situation.  Mortgages brokers have access to a variety of products from a variety of lenders in the variety of niches.

There are only five major banks, but mortgage brokers have access to these sources and many, many  more lenders which do not deal directly with the public. 

There is a wide assortment of options and features available to homebuyers today. Shopping around takes a lot of time and effort. The mortgage process within today's very competitive marketplace intimidates many Canadian homebuyers. It pays to work with a mortgage professional who will represent you and ensure the mortgage you get is the one best suited to your needs.

Choosing the wrong mortgage can cost you thousands of extra dollars. Mortgage brokers are trained professionals who can help you save on your mortgage dollar.

Other than rates, why should I use a Mortgage Broker?
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favorable rates for each project, but often whether a project is funded at all.

How do Mortgage Brokers Find Superior Rates?
Interest rates are a concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from mortgage brokers.

These rates, and preferences for types of mortgages, can change daily, depending on economic circumstances or based on the size of an institution's portfolio in a particular type of mortgage. Your mortgage broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best available at the time of placement.

Why should I go to a Mortgage Broker first?
A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly. Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent. Your mortgage broker is trained to present your mortgage proposal where and how it will get the most immediate, positive result. You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. So remember, call your mortgage broker first!

Do Brokers only do Residential Mortgages?
Brokers can place all types of loans provided they are backed by mortgage collateral. This includes small loans backed by a residential property to million dollar commercial loans backed by commercial property. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders.

In addition to handling straight mortgages, mortgage brokers are often called on to assemble financing ( based on mortgage collateral) for businesses. Mortgage brokers excel in this type of financing package because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times.

How do Brokers get better deals than many Banks?
The lenders who work with mortgage brokers include traditional sources, such as chartered banks, trust companies, as well as corporate and private pension funds. In addition to these sources, brokers often develop professional relationships with private sources of funds, termed private lenders. These lenders can provide many various mortgage products not available at conventional sources. For best results call your Broker first.

Can I still go through my bank with my Broker?
Yes, letting a mortgage broker represent you to your own financial institution can often result in a better rate than you could get on your own.