If you are looking for an Ontario mortgage, there are better options than going to your bank. Banks in Ontario, Canada are loaning money more freely than during the global economic meltdown, but will rarely offer you the best deal when you walk in off the street. Offices in those tall buildings in downtown Toronto owned by the major Canadian banks each have a vested interest to capture Canadian loan business within their product offerings. Loan officers work for the bank, and can only offer you limited mortgage products or solutions. On the other hand, a mortgage broker works for you and can help you find the best deal for your mortgage needs by shopping your loan across many different types of lenders in Ontario and elsewhere in Canada.
Getting the right financing is crucial when buying a home in Canada since it will probably be the single biggest purchase you make in your life. As an investment, it makes much more sense to buy a home than rent one in Ontario because unlike anywhere in the United States, there are no capital gains taxes on real estate in Ontario, Canada.
A Canadian mortgage broker has access to bank mortgages and can often get better deals for you than if you approach a bank on your own. In addition, mortgage brokers in Ontario have access to hundreds of other financing options, including loans from Canadian finance companies, trust companies, and private lenders. You can save time and money not having to shop around for your Ontario mortgage on your own and you only need to fill out one application. The mortgage agent or broker then has lenders compete for your business. The best part – you get expert advice that can save you thousands of dollars and it costs you nothing. Once you choose the lender, the mortgage agent is paid a commission, so it costs you nothing to tap into their expertise.
A seasoned, licensed Ontario mortgage professional knows how to negotiate the best deals and can explain all your options to you. As over 25% of all Canadians live in Southern Ontario, it is important to draw on the local expertise of an Ontario mortgage broker or agent as lenders in different parts of Canada and internationally all have different requirements. While getting a low-interest rate is important, it is not the only consideration. In Ontario, Canada the mortgage brokerage industry is regulated by the Financial Services Commission of Ontario or FSCO. You can see a legitimate Ontario mortgage brokerage license number posted on all advertising material and websites. A mortgage agent or broker can help you get the best package for your financial needs, taking into consideration fixed versus variable rates; payment options; terms, or penalties.
Recently the Bank of Canada signaled increasing rates which in turn triggered higher mortgage rates in Ontario. The housing market in Southern Ontario is doing exceptionally well in 2010 and prices are on the rise again. Recent concerns about inflation may have been overblown and the temptation for the Bank of Canada to raise interest rates is being balanced by the need to revive a growing yet still fragile Canadian economy. One strategy for Ontario home buyers given the current interest rate levels in Canada is to lock in lower rates for at least 90 days while shopping for their home to take advantage of the lowest possible Canadian mortgage rates.
If you are a first-time buyer, self-employed, or new to Canada, you will have a much harder time qualifying for a mortgage with a bank. Recent changes to Ontario law have placed tighter restrictions on mortgages, so it is best not to go it alone but gain the assistance of a local mortgage professional. If you are shopping for a home, it also pays to get pre-qualified for a mortgage to secure the rate and to know how much you can afford. From extended hours to house calls, you will also get better service from your Mortgage broker in Ontario.