Will a Mortgage Broker Get Me a Mortgage?

September 19, 2023 | Posted by: Ron Chan

Will a Mortgage Broker Get Me a Mortgage Winnipeg

You were about to Google search for a mortgage broker near you, when it occurred to you that you needed some clarity on one key question; will a mortgage broker get me a mortgage? The simple answer for most people (yourself likely included) is that yes, a broker will get you a mortgage. Of course, you’re looking for a little more insight than that. Below is a breakdown of how the right broker will make your dream of a starter home (or dream home) come true.

How a Mortgage Broker Will Help You Get a Mortgage in Winnipeg (or anywhere in Canada) as Soon as Possible

Will Help with Your Credit Situation

Like with most prospective home buyers, your credit history has you concerned. This concern has probably caused you to procrastinate on a home purchase for months if not years. Even the prospect of checking your credit score has you fearful whether or not your history of car loans, credit cards, student loans, and more will dash your dreams. Or what if you have limited to no credit history at all? 

A mortgage broker will help. They will assess where you stand so don’t run your credit check without one. Moreover, a full-service broker can help you repair your credit (if needed) and/or present a better case for you to lenders. View more on how to get a mortgage with credit concerns.

Will Provide a Robust Accounting of Income

In addition to credit history, lenders logically look to your income as a key determining factor in getting a home loan. They look to the past 2 years, today, and even your future prospects to a lesser extent. 

Interestingly very few people understand exactly what counts as income towards a mortgage. As a result their debt-to-income (DTI) ratio may be compromised. It’s important to note that lenders typically prefer to work with borrowers with a DTI of no more than 35%. An inaccurate assessment of income can also compromise your total debt service (TDS) ratio. Lenders typically prefer to work with borrowers with a TDS of no more than 44%. We won’t get into the weeds of what these two qualifiers entail BUT it’s clear that you don’t want to miss anything when presenting your income to lenders. It (missing something) is more common than you may realize. This “list” includes the following (as applicable):

  • Salary/Wages
  • Commissions/Bonuses 
  • Tips 
  • Self-Employed Income
  • Rental income
  • Investment income
  • Alimony and/or Child Support
  • Pension

View more on what counts as income towards a mortgage.

Will Increase Your Buyer Power

Most prospective home buyers underestimate what they can afford and would rather delay (yet again) getting a mortgage until they can find the home they actually desire. Murphy’s Law dictates that the cost of getting a mortgage ends up costing more when waiting. And Murphy is rarely wrong. Look no further than to those who put off getting a mortgage during a time of historically low rates in 2021 and waited until historically high rates of 2023 as a perfect example of this.

A mortgage broker cam mitigate this concern by effectively increasing your buying power. An established broker will connect you to first-time buyer incentive programs that will lower your downpayment requirements and/or your required monthly payments. Moreover, a reputable broker is provided by the banks with lower than advertised fixed and variable mortgage rates. The result will be a lower longterm cost of getting a mortgage, which increases the potential for what you can afford. Subsequently this increases the available inventory.

Can Connect You to Alternative Private Lenders

If all else fails (or simply doesn’t look good) with traditional banks a mortgage broker can connect you to alternative private lenders. These lenders look beyond simple credit checks when determining your value as an investment. They also consider important variables such as income prospects, assets, and more. A well-connected mortgage broker has relationships with reputable private lenders.

No matter how you look at it, your odds of getting a favorable mortgage with a mortgage broker, are exceedingly better than without one. If buying a home in the greater Winnipeg area, contact Ron Chan right away at 204.290.9950 for a friendly conversation.

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