Buying a home is an exciting venture; it can also be overwhelming and stressful! There are many factors to consider, such as a mortgage broker. You want to find someone local who knows the market, so if you’re buying in Edmonton, you’ll want a mortgage broker in Edmonton, and likewise if you’re buying in Toronto, you’ll want a Toronto rep. The key is finding the right lender for your needs. Just a couple of decades ago, the only choice for a mortgage were big banks and credit unions. You were at their mercy for things like terms and interest rates. Today, much has changed, and consumers have more options; hence, more buying power.

A mortgage broker can offer you better deals, better choices and more flexibility when it comes to mortgages. Whether you’re looking for a mortgage broker in Edmonton, or the Yukon, brokers know how to get you the best mortgage for your specific needs. Here’s a look at brokers vs. banks:

Banks and Credit Unions

Typically, they offer limited mortgage products and they don’t always have your best interest in mind. Banks and credit unions are in the business of making money – and they will do anything they can to get it. That means offering higher interest rates, and pushing fixed-term mortgages, which ends up costing you more money in the long run. Once you’re locked in to a mortgage, it’s very expensive to change or get out of it if you come across a better deal. It could end up costing you thousands of dollars.

You’ll also have to shop around from bank to bank and do your own research as to which one offers the better deal. Each one will do their own credit checks, which could hurt your credit score.

Mortgage Brokers

Mortgage brokers work with many different lenders and do all of the leg work for you. They only do one credit check and will work on your behalf to get you the best deal possible for a mortgage. They also work with private and monoline lenders – lenders who only deal in the business of mortgages. They will not try to cross-sell you on other products and services like RRSP’s, GIC’s or savings accounts.

Many people prefer the flexibility and convenience of working with mortgage brokers, as opposed to a single financial institution.

If you’re ready to find your mortgage broker for your financial needs, contact Jamie Arthurs in Edmonton, Alberta today!

There are several reasons for wanting to refinance your home. Perhaps you’re looking to pay off your credit card debt, update your kitchen, or reduce your mortgage payments. Refinancing can make good financial sense; but there are things you should be aware of before you jump in to the first offer available to you. Mortgage refinancing should be researched thoroughly. Here’s how you can avoid the biggest mistakes when considering mortgage refinancing:

1. Don’t go to your bank first:

Many people do this because they think they will get a better deal as an existing customer. Actually, the opposite is true. They already have your loan, so why would they give you special treatment? If you do end up going to your present bank at some point, don’t tell them you’re shopping around; instead, tell them that you’re considering paying off your mortgage early.

2. Know what the interest rates are:

In the case of mortgage refinancing, knowledge really is power. Do your research and know what the current interest rates are. It’s also crucial to know what you’re paying now and what the terms of your mortgage are.

3. Know what your costs will be:

There will be a penalty for moving your mortgage and it could be three months’ worth of interest or more. Make sure you understand and account for this and any other related costs when mortgage refinancing.

4. Make sure you’re comparing apples to apples:

A quote for a 5-year fixed mortgage at one lender is very different than a 10-year fixed mortgage at another. Be careful that you’re comparing similar products.

5. Be careful to not overvalue your home:

Your home is your castle it’s true but try to be objective when evaluating its worth. A coat of paint in the kitchen will brighten things up but won’t add $10,000 to the value. It’s best to call a realtor, or research what similar homes sell for in your neighbourhood.

If you’re ready for a mortgage refinancing solution, contact Jamie Arthurs  today!

When your mortgage is up for renewal, do you know what you are going to do? You will receive a slip in the mail from your bank saying that to renew all you have to do is sign the form and mail it back in. Pretty easy, right? Banks are hoping that you will be too busy and too lazy to look into all of your options before sending that little slip of paper back in to them.

What Happens When I Send my Mortgage Renewal Back to the Bank As Is?

If you sign the paper and send it back to the bank, you are telling them that you are ready to stay with them on the new term that they have offered you. Often, this means that you are not getting the best rate that is available in the market. Your bank will change nothing except your interest rate, and there may be other terms that you may want to renegotiate.

What are my Other Options for Mortgage Renewal?

If you don’t want to take any money out or access your equity then a new bank will take over the mortgage, giving you a better rate and also covering the costs to put their name on your property title.

You also have the option of accessing some equity by refinancing. Seeking out the help of a mortgage broker at mortgage renewal time will ensure you are getting the best advice. Mortgage brokers have access to many different lending programs. They are also very knowledgeable in the industry.

How to Prepare for Mortgage Renewal in Edmonton

Your bank may or may not contact you in advance. It is important that you are proactive, by beginning to research your options approximately 4 months before your mortgage renewal date. Use this time to explore your options and if you can save money by going a different route. Again, finding the extra time to go to many banks is hard therefore go with a mortgage broker so they can do that work for you.

Jamie Arthurs Mortgages can help you find the best options for your upcoming mortgage renewal. Contact Jamie Arthurs today.