By David Pasko
With mortgage rules changing more often than one changes their socks, it is important to know how these changes will affect your decision making process and how quickly you may want to act.
Here are a few reasons why utilizing the services of a mortgage broker should be considered:
1. Who does the “Mortgage Specialist” at your financial institution work for?
It was not so long ago that it was possible to walk into your dentist or doctor’s office and know that their number one concern was you! Now, if unprepared, you will walk out with medications or dental products that you may not have needed. Similarly, the number one duty of many Mortgage Specialists at a lot of financial institutions is to their company, not to you. This poses a concern when you are looking for your best option.
It is important to discuss your situation with someone who understands your options and how your choices may affect you in the short and long term.
2. “To Buy” or “Not to Buy”… that is the question!
As we anticipate more changes coming in the mortgage industry that will see amortizations reduced from 35 years to 25 years, it is important to assess your situation. A 10 year reduction may make it impossible to accomplish your goals. Other recent changes in mortgages are preventing many first time home owners from entering the market. The shortening amortization will further prevent people from purchasing and thus keep them stuck in the rental market. Although many financial institutions have already set the limit at 25 years, there are still other large lenders offering 35 years. If you are sitting on the fence wondering if/when you should become active in the real estate market, it might be worthwhile to not wait too long to consider your options and next steps.
3. Flexibility.
A few years ago it was nearly impossible to qualify for a mortgage if you were self-employed, but as more and more people are taking this route some lenders are changing to accommodate this sector. Mortgage brokers are in a unique place to facilitate those discussions with lenders for all sectors, including the personalized needs and desires of people with a “disability”. Different lenders are now seeing people with disabilities as highly potential home-owners and adjusting criteria to make this possible. As you look at your mortgage desires or dilemmas it is important to know that there are many options that can be potentially tailored to your situation, such as: PWD being used as an acceptable income source when applying for a mortgage.
Don’t get stuck thinking it will never happen. You may be pleasantly surprised!
David Pasko
david@qmcmortgage.ca
604-505-0680