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Where to Find the Best Mortgage


By Paul Pepin
August 30, 2013




Where do I find the best mortgage?
Many have the belief that the best and sometimes only place to get a mortgage is at a bank. The truth of the matter is that banks do not necessarily have the lowest rate nor would they have the best mortgage for you. It is important to know that banks are only one source of mortgage financing in a very large mortgage market. There are many other often better mortgage lenders on the market today. They include small banks, trust companies, cooperatives and most importantly corporations that specialize in mortgage lending (mono-line lenders) and private lenders too. It is with these other lenders that you will often find the best rates and the best mortgage terms for your needs.

Should I be concerned about lender security?
On the other hand, many prefer the banks because they feel banks offer more security. That may be true if you give your money to the bank for safe keeping. However, it is not true when the bank lends you money. Lender security is not a major factor. Why? Because you have the money! The lender has to worry about the borrower’s security. That is why they ask so many questions when you apply for a mortgage. The bottom line here is that there is no need to worry about the lender’s stability because YOU have his money! It is the same with every mortgage lender. That means when you get a mortgage from a lender, the lender stability is not a major factor. So you can safely borrow from virtually any lender if they are offering the right mortgage for you.

To win your business banks play on the misconception that they are the only safe place to do business. Therefore, they don’t need to offer you the best mortgages at the best rates on a consistent basis.

Does it cost anything to get my mortgage through a broker?
Another misconception is that only bank mortgages are “free” apart from the interest rate. Well, the same is true for similar mortgages from other lenders or when obtained through a mortgage broker. There are no mortgage fees for most residential mortgages even if you get it through a mortgage broker.

Is it true that banks charge a higher payout interest penalty?
It is important to note that banks often charge hefty payout penalties on fixed rate mortgages if you leave their mortgage before the maturity date. Read the fine print in their pre-payment penalty clause. They calculate their penalty based on the “bank posted rate”. Today, they might give you a mortgage of 3.59% on a 5 year term but their “posted rate” (advertised) is 5.34%. When you leave early they want the penalty calculated on that “bank posted rate”. So, whatever discount from posted they give you at the beginning they want it back at the end. Most non-bank lenders do not add this so called ‘discount’ to their calculations. The difference can be huge.

So, are banks a bad place to get a mortgage?
No. They simply may not be the best place to get a mortgage for you.

So, how do we find the best mortgage?
The answer is through your trusted professional mortgage broker/agent.

How is that possible?
First of all, as a modern mortgage professional I am government regulated and licensed through the Financial Services Commission of Ontario. Most bank mortgage representatives are not. Second, I have direct access to most lenders on the market including several of the banks. That gives you choice. How does that benefit you? That means I can usually set you up with the best mortgage and rates on the market from almost any lender including the banks. If I find that the bank has the best deal for you I will set you up there.
Third, I only need to do one credit check for all lenders.
Fourth, how much does it cost? For most “A” mortgages there is no extra charge. And you still get the great rates.

Who can I trust?
TRUST is a personal quality. And it has to be demonstrated. Because I am not restricted to serving one master I have more freedom to direct you to the mortgage lender that is best for you at the time. I also have a person goal of “putting your interest first”. So, I invite you to contact me and we can freely discuss the mortgage market or your mortgage needs.

If you have any questions, please feel free to contact me.

Paul Pepin, licence#M08005015
Capital Mortgages Inc broker #10575
paul@capitalmortgages.com
613-656-2173
106-18 Deakin St.
Ottawa, ON
K2E 8B7




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