An Overview of Mortgage Brokers

Here's an upbeat article by the Gazette about mortgage brokers and Montreal-based Multi-Prets.

Mortgage brokers are "consumer advocates," explains the Gazette, "ready to do the comparison shopping and bargaining that few people have the time, inclination or expertise to do on their own."

Mortgages are "like life insurance.  You can call all the (lenders) yourself and ask for the best rate for all the products, or you can let a broker do some shopping for you."

Of course, there are other benefits to using a professional Mortgage Planner besides speed and convenience.  For instance:

• The very best mortgage planners have access to rates and/or terms that 99.9% of people (often even other mortgage brokers) can never get on their own.
• Good planners keep up with new products and rates daily so you always get the latest and best financial terms.  (Note:  "Good" is the operative word.  You'd be surprised how many mortgage brokers don't keep up on this information regularly)
• Reputable agents give you a plan to pay off your mortgage in the fastest possible timeframe, and automatically notify you if it's beneficial to refinance, and when it's time to renew.
• Brokers order only one credit check for all lenders.  Borrowers who shop on their own often run several reports and damage their score.
• Good planners spot (and often resolve) problems on your application before it's ever submitted to lenders.  This alone can greatly increase the chance of approval.

Comments

[George]

Ok, I'll bite. How are you a mortgage planner that could be described as "good", or the "very best"?

What makes one mortgage broker different from another, and how is the average consumer to tell the difference?

[Melanie]

Hi George,

Thanks for the comment! Sorry if the post came across as a “hook.” :)

A mortgage is a momentous undertaking so one of CMT’s missions is to educate people about the importance of finding the best possible mortgage planner. Doing so almost always saves you time, stress, and money.

Finding the “very best” planners takes research. Start by doing a Google search or asking friends or acquaintances for referrals. Then look at the planner’s website. Is it professional? Does it convey tangible unique benefits?

After you find a potential candidate, call that planner and “interview” him or her.

Ask them questions like:

1. Can you provide me better mortgage terms than other planners, given my credit profile and desired property?
2. How fast can you get me approved given my profile? (Assuming speed is an issue)
3. What is your timeliness policy on responding to emails and voicemails?
4. What type of services do you provide after my mortgage closes?
5. How, and how often, do you keep up with new mortgage products?
6. Can you provide me two actual client references?

Then ask yourself if you would feel comfortable forming a relationship with this person for life. If the answer is no, or you are unsure, keep looking.

I won’t discuss my own offerings because I want this to be a pro-planner message and not a pro-Melanie message. But I’m more than happy to chat with you one-on-one if you want to put me on the hotseat. :)

In short, find a mortgage planner that seems passionate about being your advocate. At the end of the day, that’s all we really are.