Assessing The Role Of Real Estate Brokers In Canadian Real Estate Markets

More and more Canadian home buyers are making purchases of home properties through professional mortgage brokers. In the recent market study conducted by the CMHC, 23 percent of the approved mortgages were arranged by homeowners through the services of professional mortgage brokers. Canadian homeowners are following the common practice by their American counterparts, who are not inclined to take on their mortgage applications without a mortgage broker. In a related industry survey, about 70 percent of mortgages in the US were made through real estate mortgage brokers.

If we are going to follow the US experience, then we should expect major changes and shifts in the way transactions will be undertaken in real estate markets in Canada. This is obviously the logical next step for most home buyers as they try to explore their best options in the face of current difficulties and complications in real estate markets. With the perceived decline of investment prospects, most stakeholders would naturally seek out for ways to make significant financial gains by exploring alternatives that do not fall under the mainstream investment options.

Homebuyers will gain significant benefits if they decide to work with a professional mortgage broker. Homeowners will significantly benefit from the expertise and experience of mortgage brokers. Most banks have in-house mortgage specialists who can assist homebuyers with their mortgage applications. However, their work orientation and main responsibility are to promote and protect the interest of banks.

On the other hand, a professional mortgage broker is a trained professional who has the formal training and experience in all aspects which are essential in mortgage applications. In fact, professional mortgage brokers may even have more experience and expertise than mortgage specialists of banks. In addition to this, a mortgage broker is an independent professional and is expected to serve the interest of their clients + the homebuyers. They are independent professionals who are not affiliated with any lending institution but have access to options and rate information on a wider range of banks and other financial institutions. The primary concern of mortgage brokers is to provide their clients with the best mortgage options and rates.

You can have instant access to the banks and lending companies that offer the most competitive mortgage options if you will hire the services of a professional mortgage broker. It would normally take you at least a week to gather all the essential information if you do it on your own, since you have to conduct researches, individual inquiries, and personal visits to come up with your range of mortgage alternatives. It is important that you have access to current mortgage alternatives, prevailing rates, and payment schedule so that you can make a realistic assessment of your mortgage alternatives. Once you are able to cover all essential aspects of your mortgage application, then you can choose the best mortgage alternative that meets your requirements.

With the professional mortgage broker, you can expect a dedicated service. Mortgage brokers can assist and address your concerns any time you need their assistance. This setup is more attractive for most homeowners as it offers greater flexibility in managing the schedule and pace of various tasks that are related to their mortgage application.

Homeowners enhance their leverage in getting better mortgage rates if they have access to timely and complete information and data related to mortgage rates and options by banks and other lending companies. A mere quarter-point downward adjustment of your mortgage rate can easily translate to thousands of dollars in savings. With the significant benefits that mortgage brokers offer, Canadian homeowners are expected to rely more on their expertise when applying for a mortgage loan. Learn more about the intricacies of real estate and real estate law (see a quick overview of property law).

For more information on how to find a good realtor see here and to enlist the aid of real estate lawyer click the link.


Photo credit: CBC

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