We know you have a few questions before you search for a mortgage broker. We hope the FAQS below will guide you in finding a good broker and planning your home purchase.
What should I consider before talking to a mortgage broker in Alberta?
Be prepared before talking to a mortgage broker. To assist you in finding the best lender and mortgage rate, your broker will need a verification of your employment and income, your assets and liabilities, and your credit score. He will also want to know how much you afford for a down payment and your mortgage payment.
Do I need to hire a mortgage broker to get a mortgage?
The law does not require you to hire a mortgage broker to apply for a mortgage but it is highly recommended. Mortgage brokers can shop for the best mortgage that suits your needs and give you professional mortgage advice so you can avoid pitfalls that many consumers make.
As well-trained mortgage experts, mortgage brokers will guide you in your mortgage application process and ensure that you have all the information you need to make a smart choice.
Are there any disadvantages to working with a mortgage broker for a mortgage?
Every mortgage broker has his own network of lenders. Speaking to one mortgage broker does not guarantee you are getting the best offer. You can compare mortgage brokers so you can really find the best deal.
Is there a fee for a mortgage broker’s services?
Mortgage broker services for consumers are free – you can work with a broker for a mortgage pre-approval or consult a broker for your mortgage needs, free of charge.
Mortgage brokers are compensated by lenders by way of commissions for generating new loans. Their clients don’t pay brokers’ fees.
What questions should I ask a mortgage broker?
When you speak to a mortgage broker, make sure to ask questions such as:
- What lenders do you work with?
- Which type of mortgage is best for me?
- What is the lowest interest rate I can get?
- Can I break my mortgage with this mortgage offer?
- What is the mortgage hold for this pre-approval?
- What fees do I need to pay?
These smart questions can give you a better understanding of the process and the type of mortgage you are getting.
Who regulates mortgage brokers in Alberta?
Mortgage brokers in Alberta are regulated by the Real Estate Council of Alberta (RECA). It is this agency that issues mortgage broker licenses and sets standards they must follow.
Can mortgage brokers help with refinancing a mortgage?
Yes, mortgage brokers can help you refinance a mortgage to consolidate your debts or obtain more funds for investment purposes, education, renovation, etc.
As mortgage professionals, brokers will explain to you the best way to access your home equity to meet your financial goals. They will also shop for the best lender and mortgage rates for refinancing your existing mortgage.