Becoming a great Mortgage client

I like to offer some insight about navigating the mortgage industry as a client. Here’s a breakdown and some tips on how to approach getting a mortgage:

1. Understanding Your Options: Recognize that you have many choices when it comes to arranging a mortgage. While this can be overwhelming, it’s essential to explore different lenders and products to find the best fit for your needs.
2. Costs Involved: In most cases, arranging a mortgage doesn’t cost you directly, though there might be exceptions where fees apply. Always inquire about fees upfront to avoid surprises.
3. Bank Mortgage Specialists vs. Mortgage Agents/Brokers: Bank specialists typically offer products from their institution only, whereas mortgage agents or brokers have access to multiple lenders and can offer a wider range of options. This breadth of choice can often lead to finding better terms or rates.
4. Transparency and Confidentiality: Be open and honest with your Mortgage Agent or Broker. They are bound by regulations to keep your information confidential and secure. Ensure you grant explicit permission before they share your financial profile with lenders.
5. Documentation Requirements: Federal and provincial regulations require thorough documentation of your financial situation. Be prepared to provide detailed records of your income, assets, and liabilities, typically going back at least 90 days.
6. Financial Responsibility: Ensure your financial obligations are up to date, including income taxes and other statutory payments. Lenders will scrutinize your financial health to assess your ability to make mortgage payments.
7. Stability During the Process: Avoid making significant changes to your financial situation between signing the mortgage commitment and the closing date. This includes changing jobs or making large purchases, as these changes could affect your mortgage approval.
8. Rate vs. Total Package: While a lower interest rate is attractive, consider the entire mortgage package, including terms, conditions, and flexibility. Sometimes, a slightly higher rate might offer better overall benefits.
9. Communication with Your Mortgage Agent/Broker: Stay in touch with your mortgage professional throughout the process. If your circumstances change or if you receive a new offer from another lender, inform them promptly to evaluate your options.

By following these guidelines, you can navigate the mortgage process more smoothly and ensure you make informed decisions that align with your financial goals.

I'm Steve Willson, a licenced Mortgage Agent 1 with Mortgage Alliance in Toronto. The views expressed here are my own. You can reach me through my website: stevewillson.ca