A recent study done by the Canadian Mortgage and Housing Corporation found that more Canadians are taking advantage of the mortgage financing services provided by mortgage brokers or agents. While back in 1998 less than 10% of all residential mortgages were obtained using mortgage brokers, today that number has grown to over 30%.
First time home buyers make up the largest group of Canadians taking advantage of the services being provided by mortgage brokers, with almost 40% using agents to acquire their first mortgage. In contrast however, only 10% of Canadians renewing their mortgage used a mortgage broker to shop around for a better deal. The other 90% simply stayed with their current lender, often accepting the first offer they received.
First time home buyers make up the largest group of Canadians taking advantage of the services being provided by mortgage brokers, with almost 40% using agents to acquire their first mortgage. In contrast however, only 10% of Canadians renewing their mortgage used a mortgage broker to shop around for a better deal. The other 90% simply stayed with their current lender, often accepting the first offer they received.
The aforementioned study also found that only half the Canadian respondents knew what role mortgage broker’s played in obtaining mortgage financing. Of those respondents actually familiar with mortgage brokers, many thought incorrectly that mortgage brokers charged fees directly to the consumer for their services, when in reality mortgage brokers work for the client but are paid by the lending institution.
So it seems that while many Canadians are slowly catching on to the benefits of working with a mortgage broker, many others are still relatively unfamiliar with the profession and the services available to them. Unfortunately, the end result of this is that many Canadians are needlessly paying higher interest rates and thousands of extra dollars in interest payments over the life of their mortgages.
Today’s diverse and competitive mortgage marketplace makes it essential for Canadians to shop around for the best mortgage rates and terms available to them at any given time. Whether you are purchasing your first home, renewing your mortgage or refinancing, these should all be seen as opportunities to shop around.
If you have any questions about this article or if you would like to explore your mortgage financing options please call 416.303.4480 or visit my website at http://www.thescooponmortgages.com/
If you have any questions about this article or if you would like to explore your mortgage financing options please call 416.303.4480 or visit my website at http://www.thescooponmortgages.com/
Domenic Mirabelli
Mortgage Agent
Lic # M10000364
416.303.4480
“If you are not using a mortgage broker... You are paying more than you need to”
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