Category Archives: About Mortgage Brokers

8 Things to Be Aware of When Buying a Second Home

You can afford a second home, let us show you how!

Now that low interest Canadian mortgage rates are readily available, it seems like the perfect time to invest in a second home. Here’s what you should know before purchasing a second property.

Things to Learn Before Buying a Second Home

1) Do your research.

You will need to resist the urge to buy a home because you want a getaway. Research the properties, area, and low mortgage rate options beforehand. This is an investment, not just a vacation.

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What to Know Before You Get an Investment Property Mortgage

Investing in property has long been a great way to diversify your portfolio and improve your long term returns.

Unfortunately, recent rule changes have changed the playing field for many potential real estate investors. While buyers used to be able to purchase an investment property with very little down and still receive a great rate, current hiccups in the market and changes to legislation are making it more difficult for investors to get in the game. Continue reading →

Get a Better Rate: Five Questions to Ask Your Broker

Mortgage brokers are expected to be honest when it comes to providing their customers with financial advice. It’s their job, after all, to find you the best possible rate based on your unique financial situation. But, as with any other position of authority, there are always a few bad apples in the bunch. If you’re shopping for a mortgage rate, never assume that just because your broker has a friendly face, that he or she is looking out for your best interests.

Educate yourself in order to avoid less-than-ethical mortgage brokers. Remember, mortgage brokers are usually paid by the lender for referring customers and processing applications. This compensation varies based on the lender and the mortgage type. As such, it’s difficult for many brokers to resist the temptation of a higher commission for recommending a certain product.  The following are five important conflicts to discuss with your broker the next time you’re shopping for a new rate.  Continue reading →

Why a Bank Mortgage Might Not Make Cents

It’s no secret that the banking industry operates in a regulatory environment. Bankers and advisors are required to adhere to strict rules and restrictions… except when it comes to mortgages. According to Samantha Gale, a former mortgage regulator with B.C.’s Financial Institutions Commission and chief executive officier of the Mortgage Brokers Association of British Columbia, individual bank mortgage reps, unlike mortgage brokers and agents, operate outside of regulatory boundaries.

In fact, most banks set their own mortgage recommendations and compensation agreements themselves.

Consumer protection differs greatly between brokers and bankers. Since bank employees are the ones recommending the mortgage product, or an alternative lender, and these banks aren’t required to abide by the same broker regulations, there’s nothing stopping them from doing what they please.

Which begs the question, just whose interests are these bankers looking out for? Continue reading →

Listing This Spring? Sounds Like You Could Use a CMA

Thinking about listing your property this spring? Then now’s the time to request a comparative market analysis (CMA) from your real estate agent. A CMA is an evaluation of listings and sale prices of similar houses in your neighbourhood. Similar to an appraisal in that it provides sellers with an estimate of their home’s market value, a CMA can help you be objective about the true value of your home.  Continue reading →