Part of the home buying process for most people is getting a mortgage (to read about all mortgage information click here). Prior to starting your search, it is advisable to get a mortgage pre-approval. This can be done either through your bank or a Mortgage broker.
What’s the difference?
A mortgage broker works with various lenders (including some of the main banks) while the bank is its own entity. A mortgage broker generally has access to a variety of different rates and different types of lending programs depending on what you plan to buy. They also have the option to “shop your rate” (allowing you to continue to search for the lowest rate possible) right up until your closing day.
The key difference between a mortgage broker and a bank that I have noticed is their availability. Given that most real estate deals take place after business hours I’ve found it can be a major advantage and in some instances can make or break the deal to have access to the mortgage broker. The banks’ set hours can be somewhat limiting. It’s also critical to work with a mortgage broker (or bank) that is very familiar with the speed of the Toronto market and the various nuances of buying different styles of homes or condos.
As you look at your financial situation, you may need to start to factor all the costs involved, click here to read about all the expenses you need to take into account.