As a professional mortgage agent, I often come across people who get denied by banks time whenever they are looking for a residential mortgage.
Clients often fail to realize that Banks have one of the stringiest lending policies in the whole world. Because of that, they are only willing to finance A clients. In other words, people with almost perfect credit scores, stable incomes, and good credit history.
Another drawback is the bank's ability to offer only their products, which ultimately limits clients' options as to the best rate and term available for them.
With many connections in the industry, mortgage agents in Canada can also recommend other professionals within the industry. Real Estate lawyers, real estate brokers, and appraisers are all a part of our professional circle.
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On the other hand, mortgage brokers don't have that problem. We work with multiple banks and credit companies to offer a variety of options with only one credit check.
Many of us, including me, have built personal relationships with many top underwriters in the same banks. Thus giving us the leverage and ability to negotiate deals on much more favorable terms.
It is a little-known fact, but most mortgage professionals are also able to discount rates as well, by foregoing a part of their commissions.
As it currently stands, the world's economy is in a very unstable stage and Greater Toronto's real estate market has never been hotter. Increases in prices of residential houses and condominiums have been remarkable over the last three years.