Benefits of Working With a Broker
Get independent advice & the best deal on the market
November 22, 2023
What is a broker?
A broker is a licensed and qualified financial intermediary who acts as a bridge between individuals or businesses seeking financial products, such as mortgages or life insurance, and the various financial institutions that provide these products. In the context of Canada, mortgage brokers and life insurance brokers play crucial roles in helping clients navigate the complex landscape of borrowing and risk management.
Types of brokers
There are many types of brokers but for the purpose of this page, we’ll focus on mortgage brokers.
Mortgage brokers
Benefits of using a broker
Working with a broker provides you with a dedicated professional who can navigate the complexities of the financial market on your behalf. Their independence allows them to offer unbiased advice and access a broader range of options, ultimately assisting you in making informed decisions tailored to your specific situation and goals.
Benefits of a mortgage broker
Access to multiple lenders: mortgage brokers have access to a wide range of lenders, including major banks, credit unions, and alternative lenders. This means they can shop around on your behalf to find the best mortgage product and interest rate for your unique financial situation.
Saves you time: Shopping around for a mortgage can be time-consuming, but a mortgage broker assigned to you by FinanceVine can save you time by doing the legwork for you. They will search the market and negotiate on your behalf to find you the best product.
Saves you money: Mortgage brokers often have access to better rates than the average person can get on their own. They can also help you understand the fine print of mortgage products so you don’t end up with hidden fees or penalties that can cost you money in the long run.
Expert advice: Mortgage brokers are licensed professionals who can provide you with expert advice and guidance throughout the mortgage process. They can help you understand your options, answer any questions you have, and ensure you make an informed decision.
Personalized service: Our mortgage brokers take the time to understand your financial situation and goals and work with you to find a mortgage product that meets your needs. They are committed to providing you with personalized service and support every step of the way.
Specific benefits by mortgage type
2nd mortgage (borrow from home equity)
Access to home equity: A 2nd mortgage allows you to tap into the equity you’ve built in your home, providing a valuable source of funds for significant expenses such as home improvements, debt consolidation, or educational expenses.
Flexible use of funds: The funds obtained through a 2nd mortgage are versatile and can be used for various purposes, giving you the flexibility to address specific financial needs without restrictions.
Potentially lower interest rates: Depending on market conditions, interest rates for a 2nd mortgage may be more competitive than other forms of credit, offering you a cost-effective solution for accessing additional funds.
Refinance a mortgage
Lower interest rates: Refinancing allows you to replace your existing mortgage with a new one, often at a lower interest rate. This can result in reduced monthly payments and potential long-term savings.
Debt consolidation: Refinancing allows you to consolidate high-interest debts into your mortgage, streamlining your payments and potentially saving you money on overall interest costs.
Adjust loan term: Refinancing also enables you to adjust the term of your mortgage. You can choose a shorter term to repay your loan faster or extend it for lower monthly payments, aligning with your financial goals.
Mortgage renewal switch
Rate negotiation: You can negotiate a new interest rate when renewing your mortgage. A mortgage broker can leverage their relationships with lenders to secure a competitive rate, potentially saving you money over the renewal term.
Adjust loan terms: Like refinancing, mortgage renewal allows you to reassess and adjust your loan terms, ensuring they align with your current financial situation and goals.
Review of financial goals: A mortgage renewal provides an excellent opportunity to reassess your financial goals and adjust your mortgage structure accordingly, ensuring it continues to support your overall financial plan.
Purchase mortgage
Flexible lending options: A mortgage broker can find the right lender for your purchase type. This includes buying a primary residence, vacation home, investment property and conditions like rural property, land or construction mortgages, and more.
Tailored financing solutions: Mortgage brokers can help you get approved with a non-bank lender, bypassing the stress test and other conventional approval requirements.
Guidance through the purchase process: With a purchase mortgage, a mortgage broker can guide you through the complexities of the home-buying process, providing expert advice on financing options, down payment requirements, and other crucial considerations.
