Most Canadians dream of having a home of their own as soon as they leave their parents’ house. It is something that is common with most adults who are already in the real world, working to make ends meet. This dream would increase tenfold as people start a family and they need to have a more permanent place to live.
Even though there are a lot of arguments against buying a house, this is mainly because most of them believe that this is just a waste of money. However, when done right, this can actually be a good investment for you and your family. Here’s why this is the case.
It is understandable if you are still having second thoughts about buying one. After all, this is an important decision that should be discussed with the whole family. You also need to look into your finances because this is going to cost you a lot. If you are lucky enough to have money, then this might be an easier decision for you. All you need to do is find the perfect place for your family. On the other hand, if you don’t have that kind of luxury, then you might be interested in applying for a loan. If you have already decided in buying a property, you might be given two choices: bank or mortgage broker.
Banking VS Lending
Both of these options have their advantages and disadvantages. It is really up to you on what to decide because both are valid options. It is important though that you need to have a better understanding as to how the laws on land ownership work. Here in Canada, each province has their own laws aside from the ones established by the government. Even each city has their ordinances about the same thing. You don’t need to have a law degree to understand all of it. You just need to have someone who can explain it to you. Click here to learn about mortgage laws in Canada: https://www.canada.ca/en/financial-consumer-agency/services/mortgages.html.
One of the main advantages of going to the bank is the security that they offer. Most of them have stricter policies which can be good for you. They can also help in managing your finances using their own banking system as well. If you have a good credit score, then this can be a good option for you. This can be very helpful especially if you have a good relationship with your bank. You can ask for deals better than the ones you have and even acquire other loans as well. As long as you have a good reputation in the bank, then you are in good hands.
However, most of them already have a fixed interest rate and some of them are even higher than what you expect. It can be quite painful to see the money that you put out just because of the interest. Also, it can be difficult to acquire this type of loan as well and there are a lot of requirements to submit before This is why a lot of people go to mortgage dealers because they would usually offer better deals for people.
Mortgage Dealers: Who Are They?
Mortgage dealers are the people who can find deals for you outside of the banking system. This means they can provide loans from other people or organizations as well, not just a bank. They have been booming in recent years because of the demand for lower costs in loans. Before, people used to just go to the banks if they need any financial assistance. Now though, you have a lot of options through this system.
- Lower Interest Rate
This might be one of the most important advantages that mortgage lenders have over banks is the generally lower interest rate. Most banks only offer a fixed rate in every single type of loan that they offer to the public. On the other hand, lenders will look for the best offers that might suit your needs. There are a lot of organizations and companies that they might have connections with, and they can certainly give you a good deal for all of it.
- Easier to Process
Compared to banks, it is easier to process for a loan through a mortgage dealer. Most people who have a bad credit score look them up because they can find people who can lend them money. Most banks have a lot of requirements that you need to fill out which can also affect the approval of your loan. Some of them might even reject a request because of very minimal problems because this can be seen as a risk. With dealers, they can give you a loan that you can process within the same day.
- Many Options To Choose From
Banks would only refer to their financial products, like mortgages, if you ask for them. After all, they want their bank to be the only one you will take a loan from. However, mortgage lenders can look all over your province to give the best options for you. This can lead you to more opportunities and can also help you save more from interests. Some lenders are even connected to banks themselves, and they can lower down the interest rate depending on the situation.
- Expertise In The Field
Banks can give you financial assistance as well as advise when it comes to managing your properties. However, they might not be well versed in land or property ownership, just the general facts of it. Mortgage lenders can give you advice on what to do in any given situation. They can also help you make the best decision on any kind of purchase. Sometimes, they can lead you to better properties which you can acquire for a lower cost. Most people would even trust lenders these days more than the big banks. It can be quite helpful especially for those who are just starting their home ownership journey.
