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11 Sep

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If you are thinking of investing in a house of worship, then you will need to obtain an institutional mortgage in Canada. However, obtaining an institutional mortgage in Canada, which is sometimes referred to as “religious financing,” can prove to be challenging. Furthermore, institutional mortgages can also be used to invest in elementary schools, high schools, and other types of educational centers as well.

The good news is you can make things easier on yourself by obtaining the services of a mortgage broker in Canada. Here, we will discuss some of the advantages of having a mortgage broker on your side.

They Represent You Fairly

Mortgage brokers work for you, which means they will have your best interests at heart. In other words, they will not have an ulterior motive, which may be the case if they were working for a bank in the area.

A loan officer who works at a bank will only try and sell you products that their bank provides, even if none of their products will help your situation. Many are also paid via commission, so they may try and deceive you in order to make a living. However, a mortgage broker will work with hundreds of different lenders. This means you’re sure to get the absolute best deal, and they will also get paid a commission from the lender and not you.

They Save You Time

As for the negotiation process, a broker will take care of it so that you can focus on getting the house of worship or educational centre of your dreams. They will also do all of the legwork and will take care of all of the paperwork and red tape so that you can focus on other, more pertinent matters. A mortgage broker can also help you get preapproved for a mortgage if you wish and can help with any financial inquiries or issues that may come up.

You Get Lower Rates

To get the best deal on a mortgage, a broker must be a master negotiator and will need to spend long hours shopping around to get the best deals on the market. Interestingly, a recent study published by the Bank of Canada found that borrowers who partner with brokers in Canada pay lower rates than their non-broker counterparts. This is because brokers have excellent people skills, and have learned how to build enduring and cordial relationships with a vast array of different lenders, allowing them to negotiate the lowest interest rates on the market and then pass on the savings to you.

Secure an Institutional Mortgage With Poor Credit

The lending rules in Canada have become more stringent over the last few years. As a result, those who recently declared bankruptcy, or those who have poor credit, may be unable to procure a mortgage by taking the conventional path. Those with a brief record of employment, as well as those who are self-employed or who have low incomes, may struggle to get a mortgage from a conventional lender as well.

The good news is that a mortgage broker can help someone who has been denied a loan from a traditional lender. This is because they work with a wide array of different lenders in the market, including specialized organizations, some of which specialize in helping people with tarnished credit histories obtain a mortgage.

You Get the Best Lender

It should be noted that obtaining a mortgage can be a very arduous and complicated process. There is no be-all-and-end-all solution that will work for everyone interested in getting an institutional mortgage in Canada. Each person has their own unique needs and concerns, and some first-time buyers make the mistake of only focusing on the interest rate before deciding on which lender to go with.

For instance, you should also look into the payment schedule, amortization period, and whether or not you would prefer a fixed or variable mortgage. Mortgage brokers are independent workers, which means that they are not restricted in terms of the financial products that they can offer their clients.

Instead, they will work hard to find a customized mortgage product that is offered by the best lender in the market. For instance, depending on your unique financial needs, they may offer you a financial package from a private lender, trust, chartered bank, or insurance company. This is in stark contrast to banks, who do not have a network of lenders at their disposal. The loan application that a bank receives for a loan will come from only one lending enterprise.

You Don’t Have to Pay Them

Another advantage of working with a mortgage broker in Canada is that, in the majority of cases, you will not have to pay them for their services. Most brokers will get paid via a fee that is paid by the financial company that arranged the mortgage for you.

They’re Financial Experts

To become a mortgage broker in Canada, a person needs to undergo very extensive training, which involves taking several courses and passing multiple tests. Becoming a licensed mortgage professional takes years of hard work and dedication.

If you are in doubt, don’t hesitate to ask the broker you are thinking of working with to show you their qualifications. Do not hesitate to ask them how long they have been a broker for, as experience in the financial sector is very important.

Not all brokers are created equal, so you should perform the necessary due diligence to find the best broker for your unique financial needs.

To learn more about institutional mortgage solutions and services in Canada, call Mortgages, Mortgages at 866-307-0747 or contact us here.

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