How do you pick your mortgage consultant?

Paying off your mortgage is an endurance sport. There are many strategies that can help you to win (that is, pay less interest). A good mortgage consultant (courtier hypothecaire) is an important asset who can help you obtain a good mortgage with a good mortgage strategy that will help you year after year so that you can pay off your home loan more quickly without it affecting your lifestyle.

You can find the right kind of mortgage counselor for you if you know what you are looking for. Look upon it as hiring any professional with whom you plan on working with for years to come, like your lawyer or your accountant. Just like these professionals, your mortgage counselor should be there for you over the next 15 or 25 year – courtier hypothecaire.

Here is what you should look for in choosing a good mortgage counselor:

Three types of mortgage counselors

The three kinds of mortgage brokers come with their own set of advantagesand weaknesses:

• A bank representative. This consultant can only offer you the lending products that his bank has to offer. He also has more jobs than just finding you a mortgage, and gets his salary whether he finds you a good one or not. He may get a bonus if he originates a lot of mortgages for his bank, however.

Many times the bank representative acts as a mortgage consultant. They have to submit the mortgage application to the bank. Now, with changes in mortgage lending, lenders offer their home loans through mortgage brokers, or mortgage marketers. The bank rep still can offer mortgage products and other banking products for the financial institution that they work for.

• Mortgage marketing agents: Offer loan products solely, and specialize in home loans. Is paid for the most part by commission (paid by the lender – courtier hypothécaire.

To better serve their clients, banks have started to hire local representatives. Mortgage marketing agents go to their clients but work principally for a bank or lender. Like mortgage brokers, they are paid by commission on the amount of the loan their client gets.

• Mortgage brokers: A mortgage broker does not work for any one financial institution. He works with many and can pick and choose the best mortgage strategy for the client he is working for. He is paid a commission by the bank he obtains the loan with.

Brokers such as this have been around for a while, at least 30 years, but recent changes in banking regulations have meant that they are now a bigger factor in the market. Usually, a mortgage broker works with 30 or more banks to find a loan for a client. There are over 12,000 mortgage brokers in Canada, generating 27% of the mortgages.

Things to think about when you pick your mortgage consultant

Choose carefully, you need to choose someone in whom you will have a lot of confidence. Examine two key elements to see if you should have confidence in this consultant:

• Integrity: Does the mortgage consultant (courtier hypothécaire) demonstrate that he will put my interests before the interests of the lender? The negotiation of a mortgage implies that the two parties are on two different sides of the issue, with different interests: the lender and the borrower. It is important that you have confidence that your mortgage consultant is commited to finding the solutions and strategies that work best for you.

• Expertise: Does your mortgage broker (courtier hypothecaire) have the ability to offer the best strategies? Your mortgage broker should have the ability to compare all of the different mortgage products for you and determine which is the best one for you.

These two factors, integrity and expertise, will be the most critical things in choosing a mortgage counselor – courtier hypothecaire. Look at these examples:

• An excellent used car salesman probably has the necessary expertise to sell you a car, but do you have confidence in him? That depends!

Even if your mechanic is the most honest man you know and he works with metal, you wouldn’t ask him to do the plumbing for your kitchen pipes. Why? He doesn’t have the expertise!

Make sure you make the right choice.

How to describe confidence? It is merely a feeling that you can develop when you can see that the person indicates to you that he has integrity and can show you his expertise. You will be working with your mortgage counselor for many years, so you need to have someone who is on your side. – courtier hypothecaire