Can a Mortgage Broker Get Better Rates?
October 9, 2023 | Posted by: Ron Chan
Are you in the market for your very first home in the greater Winnipeg area? If you’ve been following Winnipeg real estate news then you know that interest rates have been on the rise which logically increases the cost of getting a mortgage. Consequently you’re wondering if you should seek the assistance of a broker. But can a mortgage broker get better rates? Yes they can. Below is a breakdown of how the right one will accomplish this for their clients, yourself included.
3 Ways a Mortgage Broker Can Get First Time Buyers Better Interest Rates Than if Going to Lenders on Their Own
Grants Access to Bulk Discounts
Mortgage brokers who have been in business within a given city and province for many years has established relationships with Canada’s big banks. Throughout the years brokers have connected homebuyers to these lending institutions, and over time these same institutions have come to value the relationship with the brokers. To encourage brokers to keep referring buyers to them, the banks provide brokers with access to “bulk discounts” in the form of lower than advertised variable and fixed rates. These discounted rates are passed down to clients (homebuyers). The math is fairly simple - buyers who use a broker will get lower rates compared to buyers who do not use a broker.
Assists with Qualifying for First Time Buyer Incentive Programs
Mortgage brokers know all of the ins-and-outs of Canada’s first time buyer incentive program, in addition to other programs that will reduce downpayment and/other monthly payment requirements. For instance, Canada’s first time home buyer incentive is a shared equity instrument that works by getting an extra 5% or 10% of the downpayment of your home and then repaying the Government either 5% or 10% of the property’s market value at the time of repayment, up to a maximum repayment amount. While this example is not directly related to getting better mortgage rates, any help that you get with your downpayment can lower your longterm cost of getting a mortgage. This is essentially the same thing as getting you better rates. A mortgage broker will help you determine eligibility and will help you apply to ensure that you’ve put your best foot forward.
Grants Access to Alternative Private Lenders
If you’re not happy with what Canada’s big banks have to offer as far as discounts are concerned, you can speak to your broker about alternative private lenders. Your broker will position you as an enticing investment to private lenders, who may then offer you access to both fixed and variable mortgage rates that are not being marketed to the general public. View more on the benefits of alternative private lenders.
Can a mortgage broker get your better rates? You’d better believe it! Call Winnipeg mortgage specialist Ron Chan at 204.290.9950 to ask about programs that best apply to your current financial status.
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3 ways a mortgage broker can get first time buyers better interest rates than if going to lenders on their own, from Winnipeg mortgage specialist Ron Chan.