Mortgage Brokers

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Mortgage Brokers
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Synopsis

• Mortgage Brokers Advice Understanding Mortgage
  Terms
• Mortgage Brokers What you need to know about
  Lending in Toronto
• Things to Consider When You Choose to Work with
  Mortgage Brokers
• Few Things to Remember When Working with Mortgage
  Brokers
• Five Steps to Help Select the Best Mortgage
  Brokers in Toronto Canada

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Mortgage Brokers Advice Understanding Mortgage
Terms

• PITIMI payment
• PITIMI payment is the total amount of money that
  you have to pay to complete mortgage payment.
  PITIMI stands for the payment of Principal,
  Interest, Taxes, Insurance and lastly the
  Mortgage Insurance.
• Mortgage Insurance
• Mortgage insurance covers the mortgage payment
  and is not your homeowner insurance as many
  people believe. You pay the insurance for your
  lender. This is what encourages banks to give
  loans to people with lesser amounts of down
  payments and on the other hand, the insurance is
  paid to cover the risks of the loan that you are
  receiving from your lender.
• Home owners insurance
• This insurance has policies covering a home
  against theft, fire, disasters and ensures that
  you can get your money back should something
  happen to your house.
• Loan to value
• Loan to value is a term used by many mortgage
  brokers and it refers to the amount of loan in
  respect to the value of a home. Therefore, this
  is calculated as the loan amount over the actual
  value of the house times 100.
• Annual percentage rate
• Contrary to how people think that this is the
  rate that is used to calculate the loan, the
  annual percentage rate is what banks use to
  determine the overall cost of your loan.
  Normally, the APR is usually higher than the
  interest rate charged on your loan.

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Mortgage Brokers What you need to know about
Lending in Toronto

• One of the things that you need to know is that a
  mortgage is a long term loan that will take you
  along time to pay off. Normally, people clear
  their mortgage loans in 20 to 30 years.
• There are two types of interests when it comes to
  mortgages. The fist one is a fixed mortgage rate
  that remains the same throughout the duration of
  the loan. On the other hand, there is the
  floating rate that changes according to the
  interest rate in the market. In Toronto, the rate
  is affected by changes in the economy which is
  affected by the central bank. If you have a good
  credit record, you have higher chances of getting
  a lower mortgage interest.
• Taking out a mortgage loan comes with many
  benefits for home owners. You will be a proud
  owner of a home without paying a lump sum for it.

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Things to Consider When You Choose to Work with
Mortgage Brokers

• Be sure to select a broker whose interests align
  with yours. This is a common issue people face
  when hiring a mortgage broker. It is obvious that
  you are looking for a mortgage with an affordable
  interest rate. You should also be looking for the
  one with low fees, as you will be dealing with it
  for a long time. Now, the thing you need to
  consider is that mortgage brokers get money from
  the lender because they have brought in the
  business. The amount of money they get depends
  heavily on the total amount of the mortgage.
  Therefore, it is natural to think that your
  mortgage broker will lure you into getting a
  mortgage that helps them make more money. Now,
  the only way out is to take your time and select
  a reputable mortgage broker in the first place.
  Only they will work as per your interests and
  find a middle ground that will work for both
  parties. This is the only way to avoid getting a
  mortgage that you would not be able to handle
  over time.
• Be Sure to get the best deal. The primary reason
  to work with mortgage brokers in Toronto is that
  they help you find the best deals. You can easily
  do your own research and find a mortgage, but it
  may not be the best deal you can find. This is
  where mortgage brokers come into the picture.
  However, you need to ensure that you are actually
  getting the best deal because some unscrupulous
  brokers may have their aim fixed on making money,
  so they make you go for a mortgage that comes
  with the exact same rates and terms that you
  would otherwise be getting on your own. There is
  no point in working with a mortgage broker if
  they cannot help you save some money and get a
  mortgage with a low interest rate. A good idea
  would be to shop around a little and do not
  automatically assume that a mortgage broker is
  going to offer the best rates.

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Few Things to Remember When Working with Mortgage
Brokers

• Choose from More Options
• Mortgage brokers have access to all those
  programs that you may not know about, and that is
  mainly because they work with a diverse
  assortment of buyers and lenders.
• Save Your Time and Money
• By working with a mortgage broker, you will
  actually have a friend that you can call whenever
  you want to find a right piece of advice.
  Moreover, a mortgage broker will offer personal
  assistance and handle all of the work, from loan
  originating to closing on their own. Since they
  have information about your application, they can
  easily communicate on your behalf without
  disturbing you all the time.
• You can save a lot of your valuable time and even
  money when you decide to work with a local
  mortgage broker.

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Five Steps to Help Select the Best Mortgage
Brokers in Toronto Canada

• Ask People You Know for Recommendations
• One simple way to find a good local mortgage
  broker is to ask your colleagues, real estate
  agents, friends, and other homeowners for
  recommendations.
• Spend Time Online
• It is always a good idea to find a few mortgage
  brokers in Toronto, Canada and then research them
  online. You can check their profiles and
  portfolios to know how they have performed in the
  past.
• Never Trust Unsolicited Advertisements
• While it may be quite tempting to try a mortgage
  broker after checking some advertisements, it is
  of utmost importance to ignore unsolicited ads at
  all cost.
• Interview Your Selected Brokers
• Another good way to find a good local mortgage
  broker in Toronto is to interview them. You
  should read online reviews to shortlist at least
  three mortgage brokers. Then, you should talk to
  them in person.
• Ask about their Rates
• Never finalize your deal with a mortgage broker
  unless you have clearly inquired about their
  fees, rates, and points. Mortgage brokers make
  profit by connecting you with lenders and this
  profit may be in the form of commission fees or
  points.

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The End

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