Lenders Heading for the Exit Doors – Mortgage Broker Choice More Critical Than Ever

In recent days and weeks several large institutional lenders have ripped down their signs and decided that for one reason or another that the Canadian home mortgage market is just a little too volatile for their taste. Whether due to fears for the future or because they’re reallocating their marketing strategies, the end result is Canadians now have fewer institutional choices than before. Here’s how to get the best refinancing rates – and the loan you want – without sacrificing the service you want, need, and deserve.

You’ve heard the names: GE Money Canada, HSBC Financial Corp. Ltd., and Accredited Home Lenders. You may think that the exit of these big lenders means you’ll be unable to get a decent rate. Don’t jump to conclusions. While it’s true that there are fewer large institutional lenders than before, many of these lenders all offered various flavors of vanilla ice cream. What I mean is this: Many of these lenders offered similar rates, terms, and overall loan packages. However, there are still many, many excellent lenders that can meet your refinancing or loan consolidation needs. However, it’s more critical than ever that you choose the right broker with which to work.

A good broker is like a good travel agent. They can both help you find the best deals, and ensure that you enjoy your trip. A good travel agent will take the time to find out where you want to go. They may have the best price in the world on a trip to Mexico City, but if you have your heart set on a Caribbean cruise, you’re bound to be disappointed with the result. A mortgage broker is the same way. If you need a refinance loan and your plan is to sell your home in a few years, and they try to match you up with a simple debt consolidation loan, you won’t be getting what you want or need.

Instead of wasting time with a newcomer who wants to play mortgage broker on a part-time basis while he or she learns the ins and outs of the industry, choose a broker that’s been around the block multiple times. Demand that your broker have a wealth of experience with a variety of financial situations, loan types, and has an adequate lender pool to meet your needs.

Demand integrity and credibility of your broker. Are they honest? How ethical are they? If they’re honest and above-board on the tiniest of details, you can have confidence that they’ll treat you right when the chips are down and it really counts.
Refinancing your home is a major decision. Don’t place your trust in a welterweight with limited experience. Improve your chances of getting the right loan for you by choosing a real professional that will put your long-term needs before his or her short-term desire to earn a commission check. When you do, the good news is that you’ll get the loan you need and they’ll still make money. That’s a win-win transaction that you can take to the bank.

Need to unlock your home's equity - but have a few questions? Why not consider a free private email consultation with me, Darrin Roseborsky? There's no obligation or commitments to worry about. Just helpful answers to your questions. Use the short form in the top-right corner to get started. And in a few minutes, you'll have the answers to all of your questions.