All Lenders are not created equal

Whether you are getting you first mortgage, up for renewal, or looking at refinancing, it is important that you look at what your options are.?It’s not simply what’s the lowest rate, so here are my thoughts on things you should be considering.

First, your bank is not always your friend.?I have nothing against banks, several of them are willing to work with Mortgage Agents and have some terrific products to offer.?But you owe it to yourself to explore beyond the familiar.

If you have good credit, employment income, live in (or near) a Canadian city and are buying a house or condo, then you likely have many options.?Major banks, Credit Unions and Mortgage companies all want your business.

Banks can make it easier, as they already have easy access to a lot of your financial information…but you are limited to products they sell and the fees and potential penalties can be high.

Credit Unions are often more flexible…but you need to pay a small membership fee and often the mortgage is not transferable out of the province where they operate.

Mortgage companies are often unfamiliar to many of you, but they tend to have a wider range of options, often have lower rates and can offer better fees and penalties if you need to break your mortgage early.

For the rest of you there are still many options, they simply may come with different requirements. Perhaps you will have do things such as, provide a bigger down payment, pay a higher interest rate, provide more income documentation.

It’s fair to say that it’s a complicated market and we don’t expect you to run around exploring all your options.?That why the banks still hold a significant portion of the Canadian mortgage market.?But at least 40% of Canadians now talk to a Mortgage Agent before making their decision…and that’s a good thing.?We are bound by regulation to be open and transparent with you, and normally you do not pay for our services.

So as I said earlier, you owe it to yourself to explore your options, and a Mortgage Agent is a good place to start.

I'm Steve Willson, a licensed Mortgage Agent and you can find my website at www.stevewillson.ca