Questions From My Kids: What Is A Mortgage Broker?
What is a mortgage broker? This is such a good question, and one that I’ve been asked many times throughout my 30+ years experience in the industry. One of my favourite people (my daughter, Koryn) asked me this question as she’s reaching the point in life where she’s looking to buy their first home.
Koryn wanted to know more about what her Dad “actually” does for work, so I thought it was time that I told her.
So, What Exactly Is A Mortgage Broker?
A mortgage broker is someone who works outside of the banking environment to help people find a mortgage that is right for them. A mortgage broker shops for you, looking for the right product—the mortgage—that meets your financial goals.
I told my daughter that mortgage brokers do two primary things for our clients:
#1 We Share Our Knowledge of the Industry
A mortgage broker is like a professional translator for all the things that financially relate to your home. I help you by translating various mortgage rules and regulations into language that you can understand and act on, such as understanding the Stress Test and what it means for you when you want to buy a home.
When it comes to the actual mortgage, I then help you understand your mortgage terms and rates. We’ll go through questions such as, how much additional money you can put on your mortgage without penalty (pre-pay); if you decide to break your mortgage, what will the penalty be; and if you want to pay for property taxes through your mortgage or not.
I love to educate people and as an experienced mortgage broker, I will help you navigate this entire process. And because I know a lot from over 30 years in the industry, I have access to products that you may not know are available or can’t be accessed without a broker!
#2 We Save You Time and Money
First-time home buyers can waste a lot of time searching for mortgage products online, especially if they are unsure of where to start. After hours, days, or in some cases, weeks, most people will give up and go straight to their bank.
Now, I’m not saying that the bank is a bad choice but they shouldn’t be your only choice. There are over 35 lenders alone that I work with on a daily basis. As a mortgage broker, I can easily suggest the product that fits your needs, with a simple phone call or email.
And my time is free to use. I did say I would help save you money! Aside from finding a great mortgage that has a good rate, prepayment options, and other benefits, my services are free to you. I’m paid by the lender when your mortgage funds so ask as many questions as you want! I love answering them.
Will My Kids Use A Mortgage Broker?
Perhaps I should be asking both of my kids if they will be using me as their mortgage broker instead!
Now that Koryn fully understands what a mortgage broker is and the value of working with one, I’m pretty confident that she’ll work with one on her first home purchase. If not, I will highly recommend that she does!
If you are looking for help with buying your first home in Calgary or surrounding areas, I am here to share my knowledge and expertise to find you the right product!