Busted! Don’t Believe These Mortgage Myths!
Mortgage brokers maintain contact with an extensive network of lenders, and this shortens your search for favorable home loan options. Mortgage agents also have good knowledge of the different lending rules, and they offer you their services at no added charge.
However, for many first-time homebuyers, mortgage finance is an unfamiliar topic. To make matters worse, there are some myths about mortgages that many people believe even today. These can hamper your chances of buying the home you want. Or worse, your mortgage terms may reflect things you didn’t expect.
Myth 1: Only mortgage clients who don’t qualify at a bank use a mortgage broker.
I think this myth exists because many people don’t know there are other, often better, mortgage options than what their bank offers. I feel clients should ask questions, and make sure they are working with a mortgage broker that can discuss all the options available, not just those of one bank. By providing a lot of information and mortgage choices, I can save my clients’ thousands of dollars.
Myth 2: There is a fee to use a mortgage broker.
This myth exists because in early days of mortgage brokering, banks and lenders did not work as partners with mortgage brokers, and therefore mortgage brokers did charge their client’s fees. Now that banks and lenders see the value of mortgage brokers as partners, they pay the mortgage broker a referral fee or commission to place the mortgage, and therefore the mortgage broker’s client is in a win-win situation. They win because they get access to the best rates and mortgage choices, and they win because they don’t have to pay the mortgage broker any fees. In rare circumstances, a mortgage broker may charge a client a fee, and if that is the case, the charge will be disclosed to the client early in the process.
Myth 3: No down payment is required.
Often mortgage clients don’t know that if they are purchasing a residence, the minimum required down payment is 5% of the purchase price. There have been many mortgage rule changes over the last eight years in Canada, and the media coverage has caused some confusion about the minimum required down payment. If you are upgrading or purchasing a second owner-occupied home, the minimum required down payment is still 5% of the purchase price. To make sure you know all your options, please contact Connie Graham.
As the best mortgage broker in Edmonton, Sherwood Park, Alberta, I make the mortgage process easier by accompanying you throughout the homeownership journey. Irrespective of the curve balls life throws your way during this process, I am here to help you with your mortgage, whether it’s with researching or guiding you through complicated transactions.