Mortgage Broker rates & terms in Toronto

Factors to determine mortgage interest rates

Some factors that determine your percentage rate can be controlled by you.  You can focus on improving these factors, should you be worried about getting a loan.  Your FICO Score and debt to income ratio are two of these factors.  These are a part of your credit report which can be seen online for free. There are several places that you can look at your credit report online to determine if there are things that are wrong or that you could clean up.

Take the time to go over things.  If you find errors, point those out to the companies that have reported them.  They are required by law to look into them and fix them where needed. This can be done by a simple letter or email. If you have the proof, say you paid them off and you have a receipt, include that in your communications.  Your FICO score is very important in obtaining a loan.  Many lenders want to see a higher score.  Most people have some dings on their credit reports that can be cleaned up.  However, there are some things that are just there that you simply cannot do anything about.  If you have had a bankruptcy, for example, that will show up on your report for many years.  However, you can simply start to rebuild your credit.

Check your debt to income ratio.

Your debt-to-income ratio is another factor the lenders will take into account. This is the amount of debt you have to the amount of money that you claim to make on your taxes. If this number is high, it will be harder to get a loan as you are more at risk. Maybe you have a credit card that has been lingering for some time that you could pay off? Credit card companies will often work with you for a cash settlement. This will allow you to improve your debt-to-income ratio and look better for lenders. However, if you don’t ask, you won’t know.

Second Mortgage – Different terms of a loan.

There are different terms of your loan. For example, you can go into a 15-, 20-, or 30-year home loan. While the longer time-frame might mean slightly lower payments, it also means, typically a higher interest rate. This is because it is riskier to lend to someone over the course of 30 years than it is 15. All of this is something that your Mortgage broker in Toronto can certainly help you with. Again, this is a great time to go to one of those online mortgage calculators and see what the differences are. This could help you determine what your next home’s price point should be as well.

Mortgage Broker rates & terms in Ontario

Quite often if you have a high debt to income ratio or you might have a few dings on your credit, a second mortgage Toronto broker can assist you as well.  Low or non-existent credit can be a challenge when shopping for a home loan.  However, a Mortgage broker based in Toronto, Ontario will know which lenders might be up for the risk.  These loans are typically higher in percentage as the lender is taking a much higher risk.  It is also hard to get any sort of deals when you are shopping for a loan and have bad credit.  If something happened to cause the bad credit, let your Mortgage broker know that as well.  Circumstances happen, but if you got back on track as soon as they were better that will show good character. For a competent mortgage broker that we have found, do reach out to:

Toronto’s Second Mortgage Brokers & Lenders – Expert Mortgage
70 York St
Toronto, ON M5H 1J8
(647) 373-5889


Benefits of working with a mortgage broker & a bank in Toronto

Pros of Mortgage banks

  • If you are working with the local bank that you do banking with, they will know you and can look into your spending and earning habits better than say someone that is looking at the paper.  This is good for people that run small businesses In Toronto.
  • You typically will only have one point of contact that will work on your loan for you.  They will answer your questions and be straight with you.
  • You have the most control over the application process when working directly with a bank.

Cons of Mortgage banks

  • Many banks are very conservative. This makes it difficult to get a home loan or home refinance from a bank.
  • They typically don’t have as many options.  They do not shop around, you are asking of them directly, so you might not be getting the best deal.
  • Banks do not have to disclose what they make off of your loan to you.  Brokers do.

Pros of a Mortgage Broker

  • Their commission is disclosed to you, so you know what they made off of working for you.
  • Brokers are usually very personable and work for you.  Banks work for themselves.  This means you will get better customer service overall.
  • Brokers will negotiate for you to get you the best deal on the current market.
  • Mortgage Brokers have access to various lending programs to get what would suit your situation the best.

Cons of a Mortgage Broker

  • If you are on a tight deadline, you should be aware that mortgage broker loans are custom tailored to your circumstance.
  • They do add to the cost of a loan.  However, many times they will pay for themselves in the savings.
  • They have no control over the underwriting process or but they have a full understanding of it, and are able to place you with the right financial institution.

Shopping around with different lenders can be time-consuming.  Not to mention most have, well, banker hours.  So, many of us are at work when we need to speak with them.  This is another advantage to having a broker as they usually will work around the times that you have available.  They offer a personalized service to help you get what you are looking for, a low-rate mortgage.

Mortgage broker loans are often easier to get.

Many times the lenders that work with Mortgage broker Toronto are a little less hash than other direct lenders. They only deal in mortgages and don’t offer all of the other banking services.  These lenders have done nothing but offer home loans.  This means they have a little more experience in home loans and are a little looser with their purse strings.  If you have a less than perfect credit score, they are more likely to take a look and give you an offer versus a bank.

Bottom line, when you are looking to purchase a new home or looking to refinance your home a mortgage broker is most helpful.  But, each situation is unique.  This is why there are so many home loan options available.  Try to determine which would work best in your situation.  Remember, you don’t have to sign on the dotted line with anyone.  So, keep your options open, maybe work with a broker and also apply to a bank.

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Finding a Mortgage Broker In Mississauga

Your Mortgage broker Mississauga should be someone you trust as well as someone that has a proven track record. Be sure to ask them questions and see if they answer in a way that you understand.  Before seeking a Mortgage broker Mississauga, you should do some research online and see what their reputation online is.  An online reputation is what people have to say about them and their experiences.  This can be found in reviews.  There are many places people can leave reviews, so be sure that you read them.  This will give you an idea of what to expect.

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Also, you can go to social media and ask others who they have used in the past or would recommend.  Many times your friends and family will offer up some suggestions of a solid Mortgage broker Mississauga.  This is helpful as you have some advice from people you know about their particular service.  Taking a minute to do your due diligence can save you headaches in the end.

Many people that have a straight shot in getting the very best interest rate through a bank due to their perfect credit and income, might want to skip a broker and go directly to a bank. However, this is not advisable for most people. Most people have some challenges either on their credit or maybe a lack of a down payment. In those cases, you would want to work with a Mortgage broker Mississauga.

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Direct Lenders vs Mortgage Brokers

When working with a bank directly, they are called a direct lender.  These direct lenders can be banks, mortgage companies that just do home loans, or credit unions.  They typically will lend money out at a certain interest rate.  These rates are often published so you have an idea in advance.

A Mortgage broker Mississauga is a person that works with various lenders to get you the very best deal. They are great for those that have less than perfect credit scores, small or no down payment, or a less than perfect debt to income ratio.  They work with lenders on a wholesale level, which means that they give lenders a lot of business.  Because of this, the lenders will, at times, give them a better rate than anything published.  They also build a reputation with lenders and if they bring them really good clients, they will be rewarded.  Some lenders only work with brokers and do not offer direct lending as an option.  This helps them streamline the process and not have to have so much overhead and staff as the mortgage brokers do the leg work for them.

There are pros and cons to going with both a direct lender or a bank.  Because of this, you need to find what you are comfortable with.  Its always helpful to take a look at some of these pros and cons.