A number of eyes of Canadians is still approaching the purchase of mortgages, as if it were a bake sale that is operated by her grandmother.
According to new data from the Financial Service Authority of Ontario (FSRAO), almost half of the people believe that banks will be treated quite a bit of the type of blind belief that is usually reserved for dogs and weather apps for visual eyes before a wedding.
In the meantime, independent mortgage brokers – those who actually compare several lenders and not only give them the house wine – are only about half as high in the Fsrao confidence survey.
Ultimately, trust is excellent for relationships – less for locking a superior mortgage contract.
The late US President Ronald Reagan said famous: “Trust, but check.”
If you get a mortgage, it is the other way around. Then check the trust.
Below you will find four scenarios in which you can take the word of a mortgage seller for the nominal value:
1. Rats quotes
Sometimes a mortgage representative claims that she gave them their “best” interest rate. But “best” is a subjective term. It often means “best for you”.
Many bankers and brokers – no names come from the school of “Quote high, back pedal graceful”. They give you a number of 4.09 percent, but if you wave a lower competitive rate on your face, you will refuse ten basis points as if it were a blowout on boxing day.
Whenever you are looking for a mortgage contract, you always do what lenders don't want: call a few other brokers or competing lenders and comparison transactions on the Internet.
2. Prerequisites
An zealous mortgage seller, especially an inexperienced, could tell you that you are approved for an interest rate of 3.99 percent, for example, for $ 700,000.
However, if you bring your financing onto the market after signing your purchase contract, you will find out that the lender did not even look at your documents or that your charming fixer group is apparently too “unique” for the taste of the lender.
Some lenders actually do their homework – by digging their creditworthiness, documents and bank statements like a forensic accountant with a magnifying glass. Others can check the rate as a preliminary member with little that have only checked their ability to finance.
“I would like to check as much as possible in advance to minimize the risk of the customer,” says Vince Gaetano, main broker of Owlmortgage.ca. “The more documentation the lender reviews, the more weight your pre-approval will have.”
The thing you have to remember is that a pre -approval is not a final mortgage approval. It does not include a real estate assessment for the beginning, so the love of the lender for your dream house is still a lot of TBD.
That and strict rules against money laundering that prescribe a detailed down payment of payment funds are just a few of the reasons why Gaetano says: “On the current market, buyers who need a mortgage should always insert a financing condition into their offers.”
“If someone only offers you a quick pre -qualification and installment company, there shouldn't be much trust at all,” he says.
3. mortgage characteristics
There are mortgage consultants who really have their back – the way the small print read before giving them a pen.
And then there are others who consider less than a customer, more than a hike in their commission declaration. These people could rave about the frills of their mortgage to discover only for them:
- You only have 30 days or less to port your mortgage when moving if you want to avoid advance payment penalty
- You can no longer borrow without paying an explicit punishment or a punishment that is sleeping into your new interest rate asleep
- Your lender has terrible interest rates if you refinance before ripe
- Your lender has a similar terrible interest rates if you convert a variable mortgage into a fixed -interest mortgage
- You can only make a promotions of the lump-sum once a year for the anniversary date
4. Mortgage penalties and fees
Only a few things in the mortgage country are darker than the actual costs for the early breaking of a closed mortgage.
Big bank sellers are notorious to bury all bad things into their paperwork and not spend time to highlight potential cost disadvantages after closing.
Yes, the supervisory authorities technically require criminal charges – but they do not demand that borrowers understand them.
In any case, you will find some of the greatest hits of the fee plans of lenders “Hope-You-Don't-Read”:
- Unheardable interest difference sentences based on the mortgage interest created that apply if you break a mortgage early
- Additional “reinvestment fees” that apply when dismissing a mortgage
- Unusually large discharge fees in provinces that you do not prohibit
All of these gimmicks are a main reason why mortgage consumers always need a second opinion of an experienced independent specialist before signing your lender's mortgage contract.
Without a doubt, her mortgage representative could be charming, warm and laugh at her father. However, sympathy is not synonymous with its interests. Bernie Madoff was also charming.
In the end, only trust the mortgage terms that you personally checked – preferably in writing.
Robert Mclister is a mortgage strategist, interest analyst and editor of Mortgagelogic.news. You can follow him on X at @robmclister.
Would you like to save your mortgage?
For the best national insured and not insured mortgage interests that are updated daily, please visit our mortgage side
Here
.