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Why Should I Use A Mortgage Broker?
One of the most common questions people ask when they are going through the mortgage process for the first time is Why should I use a mortgage broker? And that makes a lot of sense, people are usually more comfortable working with something theyre familiar with. Thats why a lot of people assume the bank is their only option when it comes to their mortgage. From the outside the mortgage industry can be dense and confusing. There is a lot of jargon and terms a person would rarely encounter in their daily life and the distinctions between a broker and a bank are not obvious right away. To answer the question of why you should use a mortgage broker over a bank, you have to understand what a mortgage broker is and what a mortgage broker isnt. What is a mortgage broker A mortgage broker is a licensed mortgage professional that focuses on finding you the best mortgage product for your unique situation. We spend our days working with a variety of lenders and helping clients get the financing they need to purchase their first home, refinance at a better interest rate, and generally improve their financial situation. The most important skill a mortgage broker (or agent!) can have is the ability and willingness to learn. The industry is always changing, there are hundreds of lenders on the market and each of them offer products geared towards a number of circumstances. A big part of a mortgage brokers job is to stay up to date with new regulations and new mortgage products, so that they can then offer their clients the best advice and service they can. How do mortgage brokers work At Ardent Mortgages, we consider our role a combination of things. We are negotiators, we work on our clients behalf to get the best interest rates and mortgage products on the market. We are coaches, we work with our clients to help them achieve their financial goals and improve their credit. We are consultants, we offer advice and options to our clients. Ultimately the client has a problem and we try to find the best solution to that problem. To do that we do the research and build relationships with lenders all across the financial spectrum, so that no matter the situation a borrower comes to us with we can help. The difference between a mortgage broker and bank The main difference between a mortgage brokerage like Ardent Mortgages and working with a mortgage specialist from your bank is a bank can only offer you one solution. And thats whatever the bank is currently offering. Working with a bank limits you to whatever products the bank is selling, whether or not they are the right fit for your situation. A mortgage broker works with a number of different lenders to find you the product thats right for you. Because of this free market dynamic, those lenders compete with each other to offer the best rates, which is why a mortgage broker can usually get you a better rate than your bank can. But a mortgage broker offers much more than just a superior interest rate. We also offer advice and guidance to our clients as well. How to find a mortgage broker Since youre reading this article youve already found one! Ardent Mortgages is ready and willing to serve you in your search for the right mortgage solution, all you have to do is fill out a 90 second applicationand I will reach out to you to get started. How to choose a mortgage broker For an in depth answer to this question read3 Common Mistakes To Avoid When Choosing A Mortgage Broker, but simply put the most important things to look for in a mortgage broker are honesty, transparency, and connection. The best mortgage brokers will show you what your financial situation looks like, how to improve it, and then walk you through the steps so you can make it a reality. They should also be transparent about what solution they are working on, why it makes the most sense for you, and then keep you informed as to the progress of the deal. These are all things that we prioritize at Ardent Mortgages when working with our clients. Mortgage broker fees This is probably the biggest sticking point for borrowers. What are the fees? they say. Its a fair question, and for many of our clients the fees are zero. For those clients, the lender pays the mortgage broker a finders fee as a thanks for bringing them the business. So not only does the client get the best mortgage at the best interest rate, there is no extra charge to work with us. For the rest of our clients, the answer is it depends on the complexity of the deal. If we do charge a fee, we always make an effort to build it into the deal itself so the borrower isnt out of pocket. Especially for mortgage refinances. And we always tell our clients that if the deal doesnt make financial sense, we wont do the deal. We will never pressure our clients into a mortgage that doesnt improve their situation in order to make a commission. Our philosophy is that its always better to consider the long term relationship and do whats best for the client, no matter what. We want to work with our clients for life, we hope that when you work with Ardent Mortgages that you dont even consider using another brokerage or lender the next time your mortgage comes up for renewal, and to do that we need to serve you at the highest level. Conclusion I hoped this article answered your question of whether or not you should work with a mortgage broker. If youre ready to refinance your mortgage or purchase your first home, Iwould love the opportunity to work with you.
Bank of Canada maintains overnight rate target at 1 ¾ per cent
The Bank of Canada today maintained its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 per cent. The global economic expansion continues to moderate, with growth forecast to slow to 3.4 per cent in 2019 from 3.7 per cent in 2018. In particular, growth in the United States remains solid but is expected to slow to a more sustainable pace through 2019. However, there are increasing signs that the US-China trade conflict is weighing on global demand and commodity prices. Global benchmark prices for oil have been about 25 per cent lower than assumed in the October Monetary Policy Report (MPR). The lower prices primarily reflect sustained increases in US oil supply and, more recently, increased worries about global demand. These worries among market participants have also been reflected in bond and equity markets. The drop in global oil prices has a material impact on the Canadian outlook, resulting in lower terms of trade and national income. As well, transportation constraints and rising production have combined to push up oil inventories in the west and exert even more downward pressure on Canadian benchmark prices. While price differentials have narrowed in recent weeks following announced mandatory production cuts in Alberta, investment in Canadas oil sector is projected to weaken further.
Largest portions of household budgets go to shelter and transportation
Shelter remained the largest budget item for households in 2017, at 29.2% of their total consumption of goods and services. Spending on transportation, the second-largest expenditure category, accounted for 19.9% of total consumption, followed by food expenditures at 13.4%. Households spent an average of $18,637 on shelter, up 3.4% from 2016. Included in this total was an average of $16,846 paid for principal residence (which includes rent, mortgage payments, repairs and maintenance costs, property taxes and utilities) and an average of $1,791 for other accommodation, such as hotels and owned secondary residences. In 2017, two out of every three Canadian households owned their home, and more than half of homeowners had a mortgage. Homeowners with a mortgage spent an average of $25,904 on their principal residence, compared with $9,642 for homeowners without a mortgage and $13,499 for renters. Canadian households paid $12,707 for transportation in 2017, up 6.7% from 2016. They spent an average of $11,433 on private transportation, which includes the purchase of cars, trucks and vans, as well as their operating costs. Households, on average, spent $2,142 on gasoline and other fuels in 2017, up 9.8% from 2016, reflecting the 11.8% annual average increase in gasoline prices. Spending on public transportation, which covers public transit, taxis, intercity buses, trains and air fares, remained relatively unchanged at $1,274. In 2017, 84.0% of households owned or leased a vehicle. Vehicle ownership was highest in rural areas (94.9%) and lowest in cities with a population of at least one million residents (79.0%).