6 Questions Vancouver Buyers Should Always Ask Their Mortgage Broker
If you’re shopping for a mortgage in Vancouver, you probably have a lot of questions about how a mortgage broker and mortgages work. We’ve created this guide so you don’t forget to ask the most important questions.
Here are six questions Vancouver buyers should always ask their mortgage broker:
Is there a fee for your services?
Most of the time, mortgage brokers come at no cost to their clients. They are paid through the lenders, as they earn a finder’s fee from the lender they refer you to. However, you will probably need to cover appraisal and legal fees. You will also want to double check with your mortgage broker about additional fees.
What closing costs should I expect?
Speaking of hidden fees, you can ask your mortgage broker directly what to expect when it comes to closing costs. They should be able to give you an estimate based on your unique situation.
How can I save on interest?
Everyone wants to know how to save money. Your mortgage broker will know all the tips and tricks for getting the most out of your mortgage, including saving as much as possible on interest.
A larger down payment on a home is a great way to save on interest, if you can afford it. Another great way is to inquire into multiple lenders. Your bank may be the obvious choice, but your mortgage broker will have access to other lenders that may be able to get you a better interest rate.
What are the penalties if I break my mortgage early?
If you’re about to secure a mortgage with your mortgage broker, you will definitely want to ask them what the consequences are of breaking it early. You might think you won’t break your mortgage term early, but many people do due to unforeseen circumstances.
A variable mortgage rate will typically have a lower penalty for breaking the mortgage early, typically only about 3 months of interest. If you think it’s likely you will break your mortgage early, you will want to go for a variable mortgage over a fixed rate.
Which type of loan is best for you?
Beyond mortgage penalties, there are several factors that go into considering which mortgage loan is the best for you. Your mortgage broker will help you determine whether you’re better suited for a fixed or variable rate mortgage.
Are there restrictions to refinancing?
If you think you might need to break a mortgage term, you will need to know if you’re even allowed to refinance. Some mortgage lenders don’t allow this at all, or the fees are more substantial if you do. Your mortgage broker will make sure you don’t miss anything important and go through the details with you.
In a city as expensive as Vancouver, you want to make sure you have everything figured out before purchasing or refinancing a mortgage. That’s why it’s so important to have an excellent mortgage broker.
At Your Mortgage Guide, we’re with you every step of the way. Book a call today and let us answer all your questions.
