Mortgage Broker or Bank: what should you do? - Mortgage Guys
  • Proudly Canadian PROUDLY CANADIAN

Mortgage Broker or Bank: what should you do?

Balancing the property odds

There are many and varied aspects of life in general that revolve around balances. This is seen in the present day Canadian housing markets as prices and home availability continue to rise and decrease respectively! It is a situation that has caused the federal government to review applicable rulings and make changes that have to varying degrees, affected the ability of some citizens to obtain a mortgage.

Anyone applying for an “insured mortgage” must supply proof by way of a “means test” that they can afford to pay for it.” This determined “stress test” utilizes the Bank of Canada’s posted rate with the result that some applicants are now approved for lower mortgages than before the rule changed. It is in the circumstances such as these that a Guelph mortgage broker can help guide you through the legal process, and also provide advice that can help determine the best future course of action for you, such as in retirement.

Influencing changes

The previous changes in the rules have included restricting lending rules for homes worth in excess of $500,000. This effectively lowers the amortization period to 25-years for high-ratio insured mortgages and restricts the processes for mortgage approvals that are based on income. Furthermore, it can particularly affect you if you are self-employed. This has resulted in some potential borrowers having less negotiating power with the banks and is a case which could call for the professional advice of  mortgage brokers in Guelph. However, it’s a situation that could cause even those who would be approved without difficulty to consider seeking some professional advice!

In many instances, home buyers and owners are concerned with the present and do not give enough consideration to the future. Therefore, they are understandably frequently seeking the lowest available rate, without fully considering the end result. On the other hand, there are those who not only want to ensure they gain the best rate and the best available product features and they accordingly seek the professional service of an experienced Guelph mortgage broker.

The housing and accommodation environment experienced during the past four to five years has affected the market generally. With added government regulation and restrictions placed on the regulatory bodies, the specialist advice of a professional mortgage broker should be considered! Some smaller financial institutions and lenders could offer better rates than the larger banks, but borrowers should also take into account potential future market volatility!

At Mortgage Guys we are open and honest about our service options and work with you so that you fully understand the home buying process. Let us take care of all your mortgage needs by providing the essential information and pre-approval to get the ball rolling!