Using the Right Broker for your mortgage just got a whole lot more important

56% of first time homebuyers realize the importance of using a professional mortgage broker. With all the mortgage rules changes and the fact that mortgage professionals have access to more mortgage options, including some that are only available to mortgage brokers, it just makes sense to use a mortgage broker.

Getting a mortgage that makes sense today and in the future just got a lot more important. You need to understand how your credit, type of income, and many other factors affect your ability to get a mortgage not only today but also how they might impact your mortgage at renewal. In the past, as long as your payments were made on time, lenders would just offer you a renewal. In today’s environment, lenders might not just simply renew your mortgage.

IFRS (International Financial Reporting Standards) require some lenders to hold additional reserves (money set aside) on a file should there be a substantial change in the client’s profile. The most opportune time for a lender to update a client’s profile is when the mortgage is due for renewal. They can check your credit to ensure nothing substantial has changed, they can confirm employment is still acceptable and income levels are stable and they can even check to see if the value of your home is still satisfactory. All these factors could determine if the lender is willing to renew your mortgage and at what rate and terms.

Contact your Mortgage Alliance Professional to ensure you are well equipped to take any necessary steps well ahead of your renewal time. If you’re buying a home, you want to make sure you have the right mortgage from the start. If you have a current mortgage, now is a good time to review your mortgage and financial situation, even if your mortgage renewal is still a few years away.