|Mortgage Broker use is more important than ever! by Richard Batke Invis - Wilkins & Associates, Penticton BC
According to the 2010 Mortgage Consumer Survey from Canada Mortgage and Housing (CMHC) mortgage brokers continue to enjoy a 45% market share of all first time home buyers, 39% of all real estate buyers and show significant favour for refinances.
Mortgage Broker Use
|Eight in ten of respondents who used a mortgage broker for their most recent transaction agree that the mortgage broker took the time to fully understand their financial situation and their needs in a mortgage.
Mortgage consumers included these benefits of using a mortgage broker:
- They are able to get the best deal or rate for their
- They are convenient
- They offer time savings when obtaining a mortgage
The necessity of using a Mortgage Broker has
The mortgage lending landscape has changed so much recently, that you need to be intimately acquainted with each mortgage lender's policies.
The value of Rental Income
Most mortgage lenders do not value the rental income as they have in the past, drastically reducing the purchasing power of rental income.
For specific examples, see my previous blog entry: Rental Properties: How the new mortgage guidelines affect your buying power.
Today, there are very few lenders who will give you the full benefit from your rental income, and if you are shopping for yourself, the odds are that you not find the rental policy that you need.
Acceptable Income Types
Each lender has a list of income sources that they allow you to use as income. Some allow the use of Child Tax Benefits, some don't. Some allow Universal Child Care allowance, some don't. The list goes on.
Mortgage Qualification Criteria
Now most First Time Home Buyers will find themselves getting a 5 year fixed rate term as the savings and extra leverage of Variable rate Mortgages have been reserved for those buying a home less than they are qualified for and those with 20% down payment.
for specific examples, see First Time Home Buyer: Your Buying Power Has Changed
When you your purchasing power has been has been reduced, it is vitally important that you can make use of ALL your resources when qualifying for the home you want to buy.
If you have a lending institution who has the most conservative mortgage lending guidelines, they will decline your application.
If you use a Mortgage Broker, you will enjoy not only the best interest rates and mortgage products,
I shop your mortgage to many different mortgage lenders including Chartered Banks, Credit Unions, "Mortgage Only" lenders and much more.
I have creative mortgage products including:
- Home Equity Line of Credit
- 50 / 50 Mortgage - combined variable
- Re-advancable Mortgage - not a Line
- Simple fixed or variable
Serving the South Okanagan, including:
Summerland BC | Penticton BC | Naramata BC | Okanagan Falls BC
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