The study entitled “Canadian Mortgage Broker Channel: Consumer and Industry Perceptions” noted among other things that only 35 per cent of consumers have a full or good understanding of the services provided by mortgages brokers, 17 per cent are aware of the AMP designation and that while two-thirds of those looking for a mortgage consult with a mortgage broker on first mortgages, that falls to 27 and 21 per cent respectively on early-term renegotiation and scheduled renewals.
What does this mean? People have learned that mortgage brokers are a great source for financing for a home . However, these people are either staying with the same lender at renewal time, typically 5 years later or they are going to their regular bank.
This is a big mistake. If you have used a mortgage broker to purchase your home, you should be going back to him/her at renewal time. Some people are finding that they need a second mortgage or a line of credit. They go to their bank when the logical choice would be to go see the person who go you the financing originally. They will know which lenders will do second mortgages behind your first and they may suggest you break your mortgage and refinance if it will end up saving you money in the end.
Remember the old TV commercial. The doctor is guiding the patient through surgery on the telephone. If you wouldn't do surgery on yourself, why would you want to negotiate the largest financial decision you make in your lifetime without having the background. Leave it to the experts.
Who else can shop the market for you and get you the best rates? As well, mortgages may have changed since your last one and a mortgage broker would be aware of any changes that could benefit you.
The moral of today's story is : When it's time to renew your mortgage call your broker if he hasn't already contacted you. Make a smart choice.
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