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Mortgage Broker Integrity

December 26, 2009 in Property Finance by Kez

An important part choosing a mortgage broker is to ensure that the mortgage broker has integrity. [See: Choosing your mortgage broker]

Integrity in a person is defined as: “Good character, as a person of integrity, incorruptible, whose conduct and actions are beyond reproach.” A mortgage broker with integrity will put your interest before their own and the lender

If you have any doubts about your mortgage broker then keep looking for another mortgage broker. You must have confidence that the advice or recommendations he/ she gives you is good for you (not him/ her!)

Finding a mortgage broker with integrity

When you are searching for a mortgage broker and are in the selection process, the first step is to have a telephone conversation with the mortgage consultant and see if he/ she listens to you without saying exactly what you want to hear. (Example: Do not tell the broker that you are looking for “the best mortgage rates for 5-year fixed” but instead ask him/ her of their recommendations for a mortgage). Let him/ her speak and answer your questions. A good adviser will probably start by understanding your situation and your goals to be able to advise you properly.

More than a product or an interest rate

If your broker speaks instantly of an interest rate or product (5 years fixed, a line of credit mortgage or even a variable rate mortgage), he/ she is probably too focused on a quick transaction rather than a long term relationship. The biggest savings come from little things over the years. Your advisor should be able to give good advice to pay your mortgage more quickly (and save interest) without putting strain on your budget.

A good mortgage consultant will probably have several solutions (preferably with several lenders) custom made for you. The best mortgage consultants have even developed several strategies they use with mortgages to save money for their customers.

All these are signs of integrity to the profession – he/ she tries to save you money

A long-term relationship

Find a mortgage broker who has a management approach to your ongoing mortgage needs. Such a broker will contact you annually to review your situation, check your mortgage strategy and give you advice.

Advisors who want only a quick transaction are easy to find, but a good advisor who is in touch year after year are in a class of their own.

  • In summary, take time to find a mortgage broker who:
  • Does not look only for a fast mortgage product,
  • Does more than just shop for interest rates,
  • Has no conflict of interest with you

Helps you save money with a good mortgage strategy

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Choosing a Mortgage Broker

December 26, 2009 in Property Finance by Kez

Choosing your mortgage consultant?

The repayment of a mortgage is a “sport” of endurance. There are several strategies that can help you gain (paying less interest). A good mortgage consultant is an important asset who can help you get a good mortgage with a good mortgage strategy helping you year after year to pay off your mortgage faster without changing your standard of living.

Finding a good adviser does not have to be rocket science. It is like hiring an employee who works for you. If you plan to pay your mortgage in 15 years or 25 years, your mortgage professional will be there to help.

Here are some considerations that can help you find a good mortgage consultant.

Types of mortgage consultants

There are 2 main types of mortgage consultants who each have their strengths and weaknesses:

The representative of the bank branch offers products from a single lender, is responsible for several tasks including mortgages and is an employee with a possible annual bonus.

The mortgage broker: Offering products from several lenders, specializes in mortgages and works only on commission (paid by the lender) and some charge an additional one off fee.

Factors to consider when choosing a mortgage broker.

Choosing a mortgage broker is primarily a question of trust. There are 2 things that normally help us trust a professional:

  • Integrity Will the mortgage broker put my interests before his own and that of the lender? “The negotiation of a mortgage involves two parties who are opposed and whose interests diverge: the lender and the borrower. It is important that you are confident that the recommendations of your advisor reflect the best strategies and solutions for you.
  • Expertise: Does your mortgage broker have the ability to offer the best solutions? Your mortgage broker should be able to compare for you the various mortgage products and determine which is best for you.

The two components, integrity and expertise are necessary for trust. Here are two examples to explain this point:

A good used car salesman probably had the expertise to sell you a car, but will you trust him? It depends!

Even if your car salesman is the most honest man you know and works hard, does he the right knowledge and expertise to be able to select the best car deal for you?

Choosing

Trust is often a feeling that one has with a person. It is based on the fact that we think that this person demonstrates integrity and has some expertise. If you find the right person to be your mortgage broker, you will probably end up with a professional who will be able to advise you for many years.

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