3 Secrets to Home Refinance Bliss

If you’ve been shopping for a home refinance loan of any kind, you’ve probably noticed that your options seem to be shrinking these days.  Regardless of whether you’ve looked at institutional refinance lenders and their “take it or leave it” inflexibility or a mortgage broker that could have multiple options available to you, the field is definitely shrinking.  

In many cases your best deal will come from a mortgage broker who can shop the market for you.  Here’s how to get the best home refinance loan in Canada, at the best rate, that’s custom-tailored for you – and your needs:

3 Secrets To Home Refinance Bliss…

1. Ask questions – The number one question that should be first and foremost in your mind is a simple one.  Ask how long they’ve been in business and what types of loans they specialize in.  Some mortgage brokers prefer to handle only commercial loans and others prefer residential loans, such as a home refinance loan.  And there are many mortgage brokers that are equally comfortable with either one.  

Regardless of what kind of mortgage loans they typically handle, you want to know that they’ve been around the block a few times and that they know what they’re doing – and that they plan to keep doing it for the foreseeable future.  

As you’ve probably noticed, lending consultants are disappearing with stunning regularity, which often means that they’re being replaced by rookies who are receiving on the job training.  Ask the questions you need to ask to ensure that your broker is a seasoned pro who knows what he or she is doing and can find you a deal you can be proud to accept.

I’ve written a number of articles about this in the past.  Here are just a few:

http://homerefinancecoach.com/choosing-a-mortgage-broker/five-hallmarks-of-a-great-mortgage-broker

http://homerefinancecoach.com/choosing-a-mortgage-broker/these-5-questions-can-reveal-a-lot-about-a-mortgage-broker-video

2. Compare apples to apples – When your broker offers you a home refinance package, first make sure you’re comparing apples to apples.  If one broker offers you a fixed rate loan and another is pushing a variable rate product, it’s impossible for you to honestly assess them because the rate on a variable rate loan will be lower – at least initially.  

If the economic situation changes quickly, the variable rate loan could re-set to a new, higher interest rate. This higher refinance interest rate could wind up costing you much more in the long run.

3. Check references provided by your broker – Before you sign on the dotted line, ask your mortgage broker for references.  If he or she is worth their weight in gold, they’ll have some good references from people they have recently worked with them for their home refinance loan.  

For most people, if their mortgage broker / consultant has truly done a good job for them, they’ll be inclined to sing their praises from the highest mountaintop.  At the same time, a broker with “performance issues” will be called out and any and all problems will be gladly disclosed by those who know him best…past clients.  

So do yourself a favor…ask for references and check them out.  Although privacy laws are pretty tight in Canada, many good mortgage brokers / consultants will have a few clients who have given permission to be contacted as a reference.  I know I do.  Find out all you can ahead of time.  You’ll be glad you did.

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