I have many friends that shop online and go to dozens of different sites in order to save a few bucks on books, TVs, appliances, etc. Is this a good idea? It definitely is if the savings are worth it and you don’t mind taking the time out of your busy day to do all the research.
What about buying a home and getting a mortgage?
This is one clear-cut example of why you absolutely need to spend time and do your homework when getting a mortgage. Yes, getting an excellent rate is one part of it, but there are costs that can surface down the road without you even thinking of it now, which can cost you a lot more than you think (I’m talking about mortgage penalties).
Lucky for the consumer, your Dominion Lending Centres Mortgage Broker does this work for you. Your Mortgage Broker has access to dozens of financial institutions, corresponding to hundreds of mortgage products… this means that you really do have a one-stop-shop for shopping around. Your Mortgage Broker is an expert at mortgages and will give you the best deal around for your specific situation.
On the other hand, many clients do choose to consult their bank first; that’s ok! However, if you do go to your bank, it’s best to be armed with the right questions:
Ask the bank representative how many mortgage clients they’ve had and how long they’ve been in the banking industry.
Ask if he/she plans on being in that same position for a while or if they’re working on a promotion (or even leaving the industry). This is important so that you know if the person will still be there once you find your place and if they’ll be around in the future if you have any questions. I used to work at a bank and that was the number one complaint from clients (that bank representatives are always moving around). It’s not their fault. They just want to get promoted and keep moving up the ranks.
Ask how their bank registers the mortgage (collateral vs standard charge) and what the differences are between the charges.
Most of us want to pay down our mortgages faster, so ask about pre-payment privileges and how it works.
Ask about the different types of mortgage terms and rates.
Most importantly, ask how prepayment penalties are calculated and ask for an example. This is important as down the road you may have to get out of your mortgage before the maturity date.
After you visit your bank, go and contact your local Dominion Lending Centres Mortgage Broker and ask them the same questions.
In just two or so hours – an hour at your bank and an hour with your Dominion Lending Centres Mortgage Broker – you would have covered 230+ lending institutions. To be clear, you would have covered one lending institution with your bank and 230+ with Dominion Lending Centres!
In my opinion, spending the two hours can potentially save you many headaches and thousands of dollars down the road.