Advantages of Using a Mortgage Broker when Looking for Second Mortgages in
Applying for second mortgages in Hamilton can be a
daunting task for even a seasoned homeowner. Hamilton has seen a boom in its
housing market over the last few years, with demand for housing and the value
of existing homes on the rise. A trusted mortgage broker can help you navigate
the process, while saving you time and money in the process. If you skipped
going through a mortgage broker for your first mortgage, here are some reasons
to consider seeking one for your second mortgage.
What Is a
As defined by the Canadian Association of Accredited Mortgage
Professionals, a mortgage broker is "an individual authorized to deal in
mortgage and lend money using real estate as a security” (Source: CAAMP).
Brokers essentially negotiate on your behalf and give you the best interest
rates and terms based on your history and loan requirements. A good broker will
research and work with various types of lenders (both traditional banks and
private lenders) to ensure that you are getting your ideal mortgage.
What Are the Advantages of Using
a Mortgage Broker?
1. Expertise and Free Advice
Since mortgage brokers specialize in mortgage-related products, they
will be able to provide you a good overview of the various financing options
that exist in today’s market. In addition, they will often give you free
consultations to walk you through the process and guidance on what you need in
order to get your second mortgage application approved.
2. Helpful for Homeowners with
Less-than-Ideal or Limited Financial History
Credit scores are a key component to getting your second mortgage
approved. It is one of the first pieces of information that traditional banks
use to determine if you are a good candidate to lend to. For homeowners who are
considered unfavourable candidates due to a lower credit score, mortgage
brokers can offer invaluable assistance in helping you negotiate better
interest rates and conditions. In addition to those with past financial
history, mortgage brokers can be helpful to those with limited credit history
such as newly settled immigrants.
Although you will still need to take the time to do
your research, find a trusted mortgage broker (consider asking friends and
family for recommendations) and calculate a monthly budget to ensure that a
second mortgage is a viable financing option. Once you find the right broker
for you, they will be able to help you fast-track the process by helping you
get paperwork sorted and negotiating with lenders on the terms and conditions.
With the countless options available for homeowners
today, consulting with a mortgage broker could help you get your feet on the
right track when it comes to searching for second mortgages in Hamilton.
Hamilton has seen a resurgence in the housing market over the last few years,
with its growing university population, vibrant art community and proximity to
the GTA contributing to its rising prices. Timing is key when it comes to
applying for a second mortgage and a buzzing real estate market can certainly
help you access more equity as a result of overall market values rising.