Recently, I worked with a long-time client to refinance her mortgage, and it reinforced a key piece of advice I’d like to share; when making decisions about your mortgage, always consult an independent mortgage broker.<\/p>\n
I worked at one of the big six banks for almost 20 years, so I understand what bank reps are up against. They operate in an environment where they are often incentivized to clear their desks and get deals done quickly rather than delving into the nuances of their clients\u2019 unique situations.<\/p>\n
Due to these factors, the rep that we dealt with did not ask why the mortgage was needed. If more detailed questions were asked, it would have been uncovered that the cottage being financed might be sold soon and that more than anything, my client required flexible prepayment options. My client was quoted posted rates rather than competitive ones, which the representative offered to have lowered \u201cif we could find better rates,\u201d thus putting the onus on our shoulders rather than offering the best that the bank could do. Not what I would expect from a 60-year relationship with the institution! <\/p>\n
Upon my recommendation, she did consult with a mortgage broker that I know, respect and trust. He easily provided better rates and terms. When the client brought these to her banker, he said that while those rates were available, they were available only to the bank\u2019s best clients.<\/p>\n
This experience underscores how important it is to always get independent advice and have trusted advisors help you prepare for and interpret that advice. If you have a 5-year mortgage and can save $1,000 to $2,000 a year, it\u2019s worth $5,000 to $10,000 over that time frame. It\u2019s also often tax-free savings, which means you might have to earn $10,000 to $20,000 to get those savings. With interest paid, a little means a lot. <\/p>\n
If you or someone you know is preparing to get a mortgage, here is a list of questions that your mortgage rep should be addressing:<\/p>\n
1.\tWhat is your financial situation?<\/p>\n
2.\tWhat are the goals of the mortgage financing?<\/p>\n
3.\tWhat are the prepayment options and terms of the loan?<\/p>\n
4.\tWhat are the recommended loan\u2019s costs and benefits?<\/p>\n
5.\tWhat options are on offer that might benefit you and how do they differ at other financial institutions?<\/p>\n
6.\tHow can you best prepare yourself for your mortgage application? Will those looking at the application welcome your financing request or question it?<\/p>\n
In this situation, the agent I recommended was able to help our client not only refinance but also feel secure when shopping for rates, terms, and lenders. And in this situation, should she decide to hold onto the mortgage for 5 years, she will have saved $10,000, tax-free. This was worth the extra hour it took for the introduction. After all was said and done, she thanked me for helping her to finance everything properly.<\/p>\n
If you are looking for someone to help you with your financing, please reach out to me, I\u2019m certain you will be happy you did.<\/p>\n","protected":false},"excerpt":{"rendered":"
Recently, I worked with a long-time client to refinance her mortgage, and it reinforced a key piece of advice I’d like to share; when making decisions about your mortgage, always consult an independent mortgage broker. I worked at one of the big six banks for almost 20 years, so I understand what bank reps are […]<\/p>\n","protected":false},"author":232,"featured_media":867,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[19],"tags":[],"class_list":["post-866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-personal-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/posts\/866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/users\/232"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/comments?post=866"}],"version-history":[{"count":1,"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/posts\/866\/revisions"}],"predecessor-version":[{"id":868,"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/posts\/866\/revisions\/868"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/media\/867"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/media?parent=866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/categories?post=866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/simonharry\/wp-json\/wp\/v2\/tags?post=866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}