Why is it more important than ever to use the services of a mortgage broker?
Why is it more important than ever to use the services of a mortgage broker?
Since March 2022, there have been 10 rate increases, and it is likely we will see another one in September as the Bank of Canada continues its fight against inflation. Additionally, we witnessed some lenders increase their rates last week in reaction to the bond yield - when bond yields rise, banks raise mortgage rates to maintain their profit margins, as they need to offer competitive returns to attract investors to their mortgage-backed securities.
We questioned the rate increases and we were told that it was indeed in reaction to the bond yield change, and also in anticipation of another rate increase in September.
Not good!
For those of you holding variable rate mortgages, if you can stomach the increases, statistically speaking, in the long term, you should end up ahead, but in the meantime…
For those coming-up on renewals, you may need to rethink your strategy…
For those of you accumulating significant credit card debt, a mortgage rate is still significantly lower than paying those exorbitant rates charged by the credit card companies…
How?
Expertise, service and guidance: We are well-versed in the intricacies of the mortgage market. We can provide you valuable guidance on different mortgage options, helping you understand the terms, rates, and features of each option.
Access to multiple lenders: We work with a wide network of lenders; conventional, “B”, and private lenders. This gives you access to a variety of mortgage products and interest rates that they might not be able to explore on your own.
Time and effort savings: Shopping around for mortgages from various lenders can be time-consuming and overwhelming. We can streamline this process by doing the research and negotiating on your behalf. This will save you a significant amount of time and effort, and you will obtain the right mortgage for your specific financial situation.
Negotiation: We can negotiate with lenders to secure competitive interest rates and terms. Our experience in dealing with lenders can potentially result in better deals for you.
Specialized situations: For those of you with unique financial situations or credit challenges, we can often find specialized lenders who are willing to work with you. This is particularly helpful for those of you who might be facing difficulties getting approved through traditional channels. More on “B” and private lenders in next week’s blog.
Market insights: we stay informed about market trends. We can provide you with information about the current rate environment and help you take informed decisions.
Continued support: we are available anytime, from application to closing, and beyond. We can help with paperwork, liaise with lenders, and ensure that the process goes smoothly.
If bills are piling up and you're unsure about your next move, don't hesitate to contact us. Give us a call or drop us an email at Fred and Martin Mortgages, and we'll be more than glad to meet with you. Our goal is to create a personalized plan that will help you overcome the financial difficulties you're facing – no judgment, just support. Remember, doing nothing is not the solution. The best part? Our services are free and could save you thousands.
Fred and Martin