The Right Mortgage Broker-Planner Will Save You Money
If you select the right Calgary Mortgage Broker/Planner you will save money not only on the cost of the initial mortgage but also on the renewal of the mortgage later on down the road. What is a Calgary Mortgage Broker/Planner and how can one save you money?
Mortgage Brokers have been around a long time and they offer mortgage products from a huge variety of lenders in the marketplace. They are independent and only earn a commission if you take out a mortgage by them. Originally their dominant purpose was to help people with poor credit or the self-employed shop around to find a lender that would finance them.
Mortgage Planners are a comparatively recent addition to the field of mortgage professionals. The principal difference between a planner and a broker is that a reputable Mortgage Planner sees a home mortgage as one piece of a longer term financial plan. With a Broker you get your mortgage and you are done. With a Planner, getting a mortgage is only the beginning. Here are some of the ways a Mortgage Planner can save you money.
First, they will work with you to get the best deal on your original mortgage. Online lenders typically represent only the products of those lending institutions willing to pay them a fee or commission. Lending officers at edges only represent mortgage products offered by the bank. Mortgage Planners have access to more mortgage lending institutions in the market.
Second, they can show you how to enhance your credit score to save you money. It’s no secret people with impaired credit ratings pay higher interest for their mortgages. Depending on your situation and time frame a Mortgage Planner may advise you to delay your buy while you repair your credit rating. If that’s not an option they will nevertheless work with you on your credit score so you can save money on a lower rate when your mortgage renews.
Third, when you work with a Mortgage Planner you get more than a mortgage – you get a mortgage plan; a blueprint for managing your loan payments throughout the life of the mortgage. Most plans include yearly reviews allowing a Planner to advise you of tax rebate programs like home renovation and energy efficiency credits that can save you money. In addition they can show you how changing the timing and frequency of your repayments can save you already more money.
Fourth, when your mortgage is up for renewal a Planner will work with you again to get you the lowest rate and the best deal possible. For many Canadians the renewal course of action amounts to simply signing and returning paperwork to their original lender with no thought given to saving money on a better renewal deal.
Fifth, once you’ve built up some equity in your home the right Calgary Mortgage Broker/Planner can help you put it to work for you. Few Canadians are aware of something called a re-advanceable mortgage which allows you to take a tax deduction on the interest you pay on the loan. It’s a slightly complicated course of action but basically it involves using the equity in the home for investment purposes, making your mortgage interest tax deductible.