5 questions to ask about your mortgage in Vancouver

5 Questions Your Mortgage Broker In Vancouver Should Be Able Answer

The Vancouver property market is still creating waves and many people are trying to buy a piece of this wonderful city. Now that the prices have stabilized you need to start to look for financing to buy that dream home. While banks are always eager to give you a loan they are not the best option. The process of buying a mortgage is complex and a lot of paperwork will be coming your way. This is where a mortgage broker in Vancouver can help.

These financial and real estate experts bring on board a lot of experience in the local market. They negotiate the best rate for you based on your ability to repay the loan. In essence, a mortgage broker is your representative during this process. They are also helpful in dealing with all the paperwork involved. With so many brokers trying to cash in on the property boom you have to be very cautious to avoid being taken advantage of.

What might appear as a deal made in heaven might turn out to be a yoke around your neck. As such, take time to interview the Vancouver mortgage broker by asking the following simple but insightful questions:

1. Why have you chosen this loan and not others?

While brokers are supposed to be working for you there are those unscrupulous ones who are not independent. They get commissions from banks to get as many clients as possible. As such, make sure the broker shows you comparative loans available in the market. If the explanation doesn’t add up keep looking.

2. What is the Interest Rate?

One blunder most home buyers make is being lured by seemingly attractive interest rates while at the end of the day they will end up paying more. Your mortgage broker should clearly explain what you will be paying on top of what you have borrowed. This helps you determine your ability to repay the borrowed amount.

3. What Is The Down Payment?

Some lenders encourage homebuyers to put down a larger down payment in order to get a better rate. Confirm with the broker if this is the case in your situation. If so, the rate will be favorable so you will feel at ease during the mortgage term.

4. What are the Accompanying Charges?

A loan might look attractive on paper but when you factor in the additional charges it turns out to be very expensive. Some of the common additional charges are; administration fees, early payment charges, legal fees, overpayment charges, late payment penalties, among others. Your broker should clarify these before you sign up for the loan.

5. How Long Will It Take To Process?

Now that you have identified you dream home in the city you will want to get the process moving. Make sure you confirm how long it will take.

The author is working as a Mortgage Specialist in Vancouver. He loves to write blogs and articles related to his industry. For more details, visit http://mortgagebrokerbc.com