Mortgage Broker

Consumer Guide 2015 mbabc.ca | 15 says Panjwani. Or, he adds, if you're likely to be transferred to another province in the next few years, you'll want to steer clear of local credit unions or other lenders that won't allow you to take your mortgage with you. Helping you choose the right lender for your situation is one of the key advantages of working with a mortgage broker. "They do not have a commitment to any one lender or a specific product; they recommend what is in the best interest of the client and do the shopping around for you," explains Caroline Rapson, franchise services manager with Centum Financial Group. "They are there as your advocate and have a clear understanding of your financial circumstances and goals, which means they have a greater likelihood of being able to secure the mortgage you need." Moreover, there are a number of public and private non-bank lenders that work exclusively with mortgage brokers. Thus, "a skilled broker has access to a greater number of lenders than consumers," says Rapson. "That means better options and, quite often, better rates." Beyond the mortgage A mortgage broker's role extends beyond securing financing – to arranging the home appraisal, recommending and co- ordinating the paperwork with a lawyer or notary, reviewing the purchase contract and statement of adjustments, securing mortgage life insurance and keeping tabs on the entire closing process. And that's just during the mortgage transaction, says The Mortgage Centre's principal broker Jerry Brar. "Once the mortgage is secured, our job isn't done there," says Brar, noting that your mortgage broker will keep in touch over the life of your mortgage. He or she will keep you apprised of where interest rates are going and, if you have a variable- • Only seek credit when you need it: When a potential lender checks your credit, such as when you open up a new credit card, it shows up on your credit report – and several inquiries in a short period of time can hurt your credit score. Of course, if you've never had any form of credit, or if you've declared bankruptcy, you may not qualify for a credit card. In that case, consider a secured credit card. A secured card allows you to put down a collateral deposit in cash that becomes the credit line for that account – so if you put down $500, you can charge up to $500. Once you develop a history of paying it off on time, you'll be able to increase the limit – possibly without increasing your collateral deposit. Woodhouse recommends credit card initiates get two credit cards and use one for groceries and one for gas. "If you don't use them for anything else, you'll never run up a bill you can't pay, but you'll have regular activity and your provider will eventually want to increase your limits." As for people with bruised credit, Woodhouse offers reassurance. "You can fix your bad credit – worst case scenario is seven years, but it typically only takes about two years." He adds that their best conversation may be with a mortgage broker, who can offer strategies for improving their credit and even financial planning advice to help set them up for success.

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