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Wednesday, 27 November 2013

Costly mistakes to go without a mortgage broker

Common mistakes you make on your mortgage will make you the slave of the bank. There are small adjustments, saving you thousands of unnecessary interests. The mistakes are obvious, to avoid them read on and get a mortgage broker who has the experience and the expertise to guide you and advise you. We volunteer for the challenge and also we provide FREE Consultation, provide a plan and a solution custom fitted to your needs and not of the lenders.
Most common mistakes by borrowers are:
1.       When you purchase a home, bank will offer you the longest amortization, as they know well, longest is the term, more interest you will pay. Interest paid on mortgages is the profit of the bank. Principal decreases very little in the first 10 years.
2.       Without a trusted adviser, well connected and well educated, experienced in the mortgage world, you are out there at the mercy of the banks.
3.       When you decide to purchase a home, going to your bank is the last thing you should do; they only offer one product, their own. Your personal banker has no education in mortgages, she is only an administrator at the branch and been told to watch the bottom line, in other words she is instructed to stick the posted rate to you.
4.       Do you think the bank has your best interest ate heart? Think again. Their own interest is what they represent; you can take that to the bank.
5.   Without knowing what are the consequences of you paying out this mortgage earlier IRD will hurt.

By spending more than you can afford and pay the least on a mortgage will make you a mortgage slave for rest of your life, but luckily there are people like us, educated financial advisors, mortgage brokers to look at your financial situation, make a sense of it and help you to get better decision trough education and advice.
Now, there are some useful pointers to make you smile:
1.       Make a down payment as big as you can, saving CMHC and other mortgage insurance payment as much as 5% of the purchase price. When you are a first home buyer, you can get a mortgage with as low as 5% down and when they stick you with the insurance ( only protect the bank) you put no money down, you hard earned money is gone, for what, protect your bank against you?
2.       Have the mortgage set to pay bi-weekly or weekly, it can shave off as many as 5 years off of your amortization. Little extra thinking, not money, will help you to save thousands.
3.       Set your mortgage up like whatever you paid off, you can re-borrow without an application and or to ask for it. This is a great arrangement and like your broker, you can count on it when you need it.
4.       Saving accounts are only great if makes higher rate than your mortgages rate. Good luck it will never happen.
5.       At the end of your term, if they will permit you, pay down the mortgage if you have extra cash, it will not make you rich by earning 2% on a saving account and your mortgage is 3.9%. Simple math, you just didn't know about it.
6.   Pick the right mortgage product and than start looking at the rate, get educated  a little, will help.

Above is only a snapshot of the overall picture. Great advises, but hey, do not try them on your own. You nowhere a match to a banker, it takes a lot of practice to get results.

We will fight for you and boy, we are good at it. Even if you do not need a mortgage today, come sign up for a FREE consultation session, your will see it, it will give you a picture and a peace of mind beside knowledge and will have first time in your life a plan for the future.