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  • Writer's pictureLendX Financial

How A Mortgage Broker Can Save You Time, As Well As Money

Updated: Mar 10, 2022

If you are thinking of buying your first home, you must be really excited about the prospect. It is a big decision, and there are many things you need to consider even before you start the formal process. The task may seem daunting - there are several people who can lend you money, and there are many different kinds of mortgage plans. It can be somewhat confusing to decide which mortgage is right for you.

For the real-estate buyers in Greater Toronto Area, there are several programs on offer - one is the First-Time Homebuyers Plan. You will most likely want to know about these and apply for one, depending on your eligibility and requirements.

The first-time homebuyer

People immediately focus on one thing when they decide to buy a new home - the house. So, it is common to find them going house hunting even before they've done any due diligence to the actual process. The first thing to do is to be pre-approved for a mortgage. The way to do this is to contact a reliable mortgage broker as they can help in the following ways:

  • A mortgage broker can get you the best interest rate that you are eligible for. When you tend to bank on your own financial resources, you may not be exposed to a variety of options. Mortgage brokers have access to a range of lenders. Consequently, a calculated comparison can be made so that you are assured of the best deal.

  • A mortgage broker can facilitate a specialty mortgage. Conventional lenders will only offer you traditional lending systems at traditional rates. There are specific mortgage schemes, such as those catered to self-employed people. As your mortgage broker will have exposure to many kinds of lending mechanisms, they can get what is best suited to your needs.

  • A mortgage pre-approval is a way to know what is affordable and what is not. This saves a lot of time and effort, so you don't go searching for a house that is not in your budget. There is a distinct advantage to be pre-approved for a mortgage because when the time comes to make an offer, a homeowner will give preference to someone who has been pre-approved (the person who is guaranteed to have the funding to buy the home) rather than someone who has not been. You can get a mortgage pre-approved online these days, with a good broker to guide you.

Second-home mortgages

Buying a second home on a mortgage is a bit of a risky business. Such second house mortgages may involve higher rates of interest, as well as higher fees. A mortgage broker can make it easy for the client to comprehend the process and minimize risk factors. Brokers bring experience and knowledge in finance to the table and have the best interest of clients in mind. It is important to know the current interest rates before attempting to get a second mortgage, as well as the potential risks and intentions of specific lenders. Mortgage brokers can especially help people with questionable credit lines due to their first mortgages.

Commercial mortgages

Commercial mortgages are designed to make the purchase of commercial property as above board and smooth as it can get. Knowing that each customer experience is unique, mortgage brokers have at their disposal a range of commercial loans that are best suited to specific real estate investors, corporate business owners, developers and entrepreneurs. Mortgage brokers with industry experience can make and execute agreements that match what clients want. The type of commercial properties that are facilitated by commercial mortgages includes, but are not limited to, builder and development finance, retail mortgages, business capital funding and equipment financing.

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