Most people believe that if you are loyal to one bank, pay your mortgage on time, and keep all your other business such as investments and insurance with that bank that you will reap the benefits of lower rates but in reality the exact opposite is true. The bank knows that most customers don't have any intention of shopping around because they assume they are being treated fair. They also know that a customer will experience anxiety when trying to negotiate and as a result won't try, so instead of providing their good customers with their best rates they reserve those rates to attract new customers.
The bank trains its staff to offer as good a rate as necessary to get your business. All mortgage specialists working for the banks are on a bonus program. By not offering the best rates whenever possible the bank makes more money and is willing to share some of this with their mortgage specialists. When you think these people are doing you a favour in actuality they are costing you thousands of dollars. I think this policy is outrageous because the bank is profiting on your trust.
The good news is that there is a very simple solution. Use a mortgage broker to look out for your financial interests.
When you buy a house you have a trained professional dealing with the sellers and their agents to look out for your interests, you also have a lawyer to look out for your legal interests and it also makes sense to use a mortgage broker to protect your financial interests. A mortgage broker deals with all the top lenders and also some specialized situations. With the right broker you will deal with a person that is working for you and not the lending institution. He will arrange the right mortgage for you and your situation and the best part is that in most cases you will get the best rates at no cost to you.
If you are self employed and need a mortgage, a broker will have lenders that specialize in these products. Lenders know that as a self employed person you legally write down your income to pay the least amount of tax and they are willing to accept declared income.
If you have little or no down payment there will be lenders to qualify you for a house or
If you are new to the country he will have lenders that specialize in this scenario and will be able to get you a mortgage.
If you have credit issues he will have lenders for this situation or if you just need to refinance or renew your mortgage this specialist will meet with you and help you determine which option will save you the most money.
The best part is that all these services are available at no cost because a mortgage broker receives a commission from the lending institution that you sign your mortgage with.
When you deal with a mortgage broker you have someone who specializes in this field and someone who is in your corner who has your best interests at heart. When you are making such an important decision that can make a difference of thousands of dollars it is a relief to know that you knew all your options and were able to choose the one that was best for you.
Article Source: http://finance-cp.com
