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Discussion Starter #1
It's still too early to even get preapproval for a mortgage, but I'm starting to look at what's out there. This will be my (and my husband's) first house.
Is it worthwhile getting a mortgage broker (when I am ready)? Why or why not?

Thanks!
 

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You don't pay the mortgage broker, they do most of the work trying to get you the best rates and can deal with lenders that don't deal with individuals. Why not do it?
 

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1) Make up your mind to see what type of mortgage you want, open, closed, period etc.

2) Loock-up ING to find their rates

http://www.ingdirect.ca/en/mortgages/index.html

3) Try to skeeze out the same rate from your financial institution (they cry on your shoulder not to match ING rates)

4) Go and see a mortgage broker and see what he has to offer

As mentioned, somme lenders do not deal with individuals..but

Some financial institution refuse to deal with mortgage brokers

Starting to loock around well in advance is the way to go.....:encouragement:
 

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Discussion Starter #4
iherald, that was my initial thinking, but I don't know if they really get you the best rate. They make their money somehow.

Does it hurt your credit to go looking at various places? I've found conflicting information regarding this; some say yes, others say since it's a bunch all at once people know you're just looking for a good rate and it won't hurt your credit. Will places give you an initial quote without a hard credit check?
 

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There is no harm is getting a mortgage broker. Will you get the best rates? Maybe. Some are lazier than others and go for the low hanging fruit. They get paid a kind of "finder's fee" for making the referral. Banks make a ton of money on a mortgage, so they are willing to share.

One thing to be careful of is the terms of the mortgage. Some have fixed periods, no early repayment, etc. (those 2.99% mortgages were very restrictive). Now, in most cases it won't matter much, but make sure you compare apples to apples, and that you know what you are getting into.

Also, never shop based on the monthly payments...that could get you into 35 year amortizations, where you are just renting from the banks...
 

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i agree with caricole here. Check ING for the 'true' rates, and go through a mortgage broker. I've rarely seen the banks/credit unions give much better then what they offer through the brokers. Don't know why -- maybe it's just easier for them.

The one HUGE caution on brokers is to make sure YOU understand what you want and how much you want. They're paid on the size of mortgage and tend to be very good (and persuasive) at getting bigger mortgages then what I'd consider makes sense. They'll talk you up.
 

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iherald, that was my initial thinking, but I don't know if they really get you the best rate. They make their money somehow
Same at the big banks. That mobile mortgage consultant at RBC (or any other) is 100% commission based, same for your bank financial adviser, and if they can get you to take a credit card in the mix . . . all the better (fee for that too)

One caveat on some of the lenders that the brokers access . . . the lender never wants to talk to you . . . ever . . . you are always going to communicate through a third party.
 

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If a mortgage broker gets YOU the best rate, do you really care how or how much they get paid? When you get the best rate possible it becomes less of an issue. If you get a traditional mortgage the bank gets paid too.
 

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I've never been able to negotiate a rate anywhere close to my mortgage broker.

My 2nd last mortgage was with TD - I told them I was shopping around and to give me their best rate. The mortgage broker got a rate that was about 0.75% less - TD wasn't even close.

Morons.
 

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Discussion Starter #10
Thanks everyone! Sounds like the broker is the way to go. It really helps to hear from people who have been there done that - maybe more than once!
 

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Discussion Starter #11
iherald, sorry if I came across as critical of your advice. I didn't want to take anything for granted especially until I got more opinions.
 

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Do your research and ask for referrals doesn't hurt either. Chances are you will be told a name someone likes, or someone to avoid!
Check out how long they have been licensed, see if they are in good standing with the provincial licensing board as well, and ask for references. May be beneficial to meet with a few and see what the outcome is
 
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