Increasing numbers of Canadian real estate investors are turning to mortgage brokers to find financing solutions that are most suited to their specific investment needs. Whereas a bank based mortgage officer is limited to his or her own products, a broker has the ability to shop across the entire market of lenders for the best, most appropriate deals. However, that’s not all that brokers can offer; some would argue that a broker’s ability to offer independent and unbiased advice is just as important (if not more) as their ability to be nimble and flexible in search of the best deal.
“In no other industry can investors get financial advice for which they don’t have to pay. In the mortgage industry, the lender pays for it,” explains Shawn Stillman, Director, Principal Broker at Sigmamortgage.ca. “It doesn’t cost the investors anything to get a second opinion. Brokers get paid by the lender, so it doesn’t cost the client anything to use a broker’s services. From start to finish, investors get impartial advice with multiple options and it’s free, so why would you not go ahead and do that?”
Investors who don’t have access to the full picture run the risk of making expensive mistakes that have long-lasting ramifications. Accessing the industry knowledge possessed by a broker doesn’t cost Canadian investors a dime, so conducting research and asking questions before making important decisions makes perfect sense. “If you look at most of the mistakes that investors make, they occur because the investor didn’t have enough information,” Stillman says. “Especially when you’re investing, it’s critical to know everything before making the final call; that means looking at the little details that help point investors in the right direction.”
Fortunately for Canadian investors, most experienced mortgage brokers have the knowledge base to give solid advice on the positive and negatives of closing each deal. “Investors should not just get a mortgage with a bank because their checking account is held there; they may be missing out on better options,” Stillman says. “Brokers help investors think about the whole financial picture.”