Getting the best mortgage interest rate is the primary aim
of most first time mortgage seekers. You can directly approach a credit union,
bank or mortgage lender or you can go through a licensed broker. According to a
report,
more and more borrowers are engaging the services of mortgage brokers to
negotiate interest rates and get a suitable mortgage.
While 40% of the new mortgages are negotiated through mortgage brokers, 39% are
obtained directly from big banks, 11% from loan/trust/life insurance companies
and 10% from credit unions, says the Canadian Association of Accredited
Mortgage Professionals (CAAMP). The key reason is the convenience that a
mortgage broker can bring into the whole process, especially for first time
home buyers.
First time buyers can also look up moneytools.ca, a site created
by the Financial Consumer Agency of Canada (FCAC), featuring a mortgage
calculator and qualifier tools, tips and useful links.
If you have multiple debts, a broker can help you combine
all your credit card debt and car loans into a mortgage account. Although this
can significantly reduce your monthly payments, you will need to have
sufficient equity in your home to be eligible for a debt consolidation program.
Make sure you understand all the pros and cons of debt consolidation. Ask a
mortgage broker to explain how the process works and what you can expect from
it.
