Synopsis • Mortgage Brokers Advice – Understanding Mortgage Terms • Mortgage Brokers – What you need to know about Lending in Toronto • Things to Consider When You Choose to Work with Mortgage Brokers • Few Things to Remember When Working with Mortgage Brokers • Five Steps to Help Select the Best Mortgage Brokers in Toronto Canada
Mortgage Brokers Advice – Understanding Mortgage Terms • PITIMI payment • PITIMI payment is the total amount of money that you have to pay to complete mortgage payment. PITIMI stands for the payment of Principal, Interest, Taxes, Insurance and lastly the Mortgage Insurance. • Mortgage Insurance • Mortgage insurance covers the mortgage payment and is not your homeowner insurance as many people believe. You pay the insurance for your lender. This is what encourages banks to give loans to people with lesser amounts of down payments and on the other hand, the insurance is paid to cover the risks of the loan that you are receiving from your lender. • Home owners insurance • This insurance has policies covering a home against theft, fire, disasters and ensures that you can get your money back should something happen to your house. • Loan to value • Loan to value is a term used by many mortgage brokers and it refers to the amount of loan in respect to the value of a home. Therefore, this is calculated as the loan amount over the actual value of the house times 100. • Annual percentage rate • Contrary to how people think that this is the rate that is used to calculate the loan, the annual percentage rate is what banks use to determine the overall cost of your loan. Normally, the APR is usually higher than the interest rate charged on your loan.
Mortgage Brokers – What you need to know about Lending in Toronto • One of the things that you need to know is that a mortgage is a long term loan that will take you along time to pay off. Normally, people clear their mortgage loans in 20 to 30 years. • There are two types of interests when it comes to mortgages. The fist one is a fixed mortgage rate that remains the same throughout the duration of the loan. On the other hand, there is the floating rate that changes according to the interest rate in the market. In Toronto, the rate is affected by changes in the economy which is affected by the central bank. If you have a good credit record, you have higher chances of getting a lower mortgage interest. • Taking out a mortgage loan comes with many benefits for home owners. You will be a proud owner of a home without paying a lump sum for it.
Things to Consider When You Choose to Work with Mortgage Brokers • Be sure to select a broker whose interests align with yours. This is a common issue people face when hiring a mortgage broker. It is obvious that you are looking for a mortgage with an affordable interest rate. You should also be looking for the one with low fees, as you will be dealing with it for a long time. Now, the thing you need to consider is that mortgage brokers get money from the lender because they have brought in the business. The amount of money they get depends heavily on the total amount of the mortgage. Therefore, it is natural to think that your mortgage broker will lure you into getting a mortgage that helps them make more money. Now, the only way out is to take your time and select a reputable mortgage broker in the first place. Only they will work as per your interests and find a middle ground that will work for both parties. This is the only way to avoid getting a mortgage that you would not be able to handle over time. • Be Sure to get the best deal. The primary reason to work with mortgage brokers in Toronto is that they help you find the best deals. You can easily do your own research and find a mortgage, but it may not be the best deal you can find. This is where mortgage brokers come into the picture. However, you need to ensure that you are actually getting the best deal because some unscrupulous brokers may have their aim fixed on making money, so they make you go for a mortgage that comes with the exact same rates and terms that you would otherwise be getting on your own. There is no point in working with a mortgage broker if they cannot help you save some money and get a mortgage with a low interest rate. A good idea would be to shop around a little and do not automatically assume that a mortgage broker is going to offer the best rates.
Few Things to Remember When Working with Mortgage Brokers • Choose from More Options • Mortgage brokers have access to all those programs that you may not know about, and that is mainly because they work with a diverse assortment of buyers and lenders. • Save Your Time and Money • By working with a mortgage broker, you will actually have a friend that you can call whenever you want to find a right piece of advice. Moreover, a mortgage broker will offer personal assistance and handle all of the work, from loan originating to closing on their own. Since they have information about your application, they can easily communicate on your behalf without disturbing you all the time. • You can save a lot of your valuable time and even money when you decide to work with a local mortgage broker.
Five Steps to Help Select the Best Mortgage Brokers in Toronto Canada • Ask People You Know for Recommendations • One simple way to find a good local mortgage broker is to ask your colleagues, real estate agents, friends, and other homeowners for recommendations. • Spend Time Online • It is always a good idea to find a few mortgage brokers in Toronto, Canada and then research them online. You can check their profiles and portfolios to know how they have performed in the past. • Never Trust Unsolicited Advertisements • While it may be quite tempting to try a mortgage broker after checking some advertisements, it is of utmost importance to ignore unsolicited ads at all cost. • Interview Your Selected Brokers • Another good way to find a good local mortgage broker in Toronto is to interview them. You should read online reviews to shortlist at least three mortgage brokers. Then, you should talk to them in person. • Ask about their Rates • Never finalize your deal with a mortgage broker unless you have clearly inquired about their fees, rates, and points. Mortgage brokers make profit by connecting you with lenders and this profit may be in the form of commission fees or points.
The End • For more details, please visit - http://mortgagesolutionsgroup.ca/blog/