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 specifi c 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 fi nancial
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 fi nancing – 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 off ers
reassurance. "You can fi x 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 off er strategies for improving their credit and
even fi nancial planning advice to help set them up for success.
P R O U D M E M BE R O F
FIND
YOUR
MORTGAGE
BROKER
