Do you need help with your mortgage in Sherbrooke? Find the right mortgage broker to assist you when you fill-out this short online form today.

Mortgage Brokers Offer a Diverse Range of Services in Sherbrooke

A mortgage broker is a great resource person for your mortgage needs – pre-approval, renewal, refinancing, etc.  Speak to one of our mortgage broker-partners covering these areas:

You don’t need to waste time going from lender to lender to find the best mortgage rates in Sherbrooke. With a mortgage broker by your side, you can make well-informed decisions and have all the answers to questions regarding mortgage types, terms, and rates across lenders.

What mortgage type do you need in Sherbrooke?

Did you know that there are different types of mortgages available in Sherbrooke?

It is important to know the features of each mortgage type to choose the best one that is suited to your needs.

Conventional or Traditional Mortgage (Residential)

This is the most common mortgage lesson. It is equal to the amount you need for buying the home with a 20% down-payment.

Subsidiary Mortgage

This type of mortgage is for borrowers who need more than what is required to buy a property. The excess amount can be used for renovations and other projects.

Closed Mortgage

A closed mortgage has fixed rates until the end of the term (usually 1-5 years).  Interest rates of a closed mortgage can be lower than an open mortgage but you must pay a penalty for early repayment.

Open Mortgage

An open mortgage gives flexibility to borrowers who want to pay off a mortgage earlier.  Interest rate is variable and on average are higher than closed mortgages.

Convertible Mortgage

A convertible mortgage can be closed or open. It can be converted into a closed mortgage for a longer period.  If you take out an open mortgage and later on prefer to switch to a closed mortgage with a longer term, you can do so.

Sherbrooke Mortgage Brokers to Assist with your Mortgage Needs

Our network of mortgage brokers work with different lenders across the region.  This means you can get access to multiple mortgage products and rates from different lenders.

Whether applying for a new mortgage or looking to refinance your existing one, our team of brokers can help you find the best mortgage deal.

Save time and money when you choose to work with a mortgage broker. Benefit from valuable mortgage advice and assistance, free of charge, and with no obligation on your part.

You must make sure to get the right mortgage to avoid paying too much for your mortgage.

Fill-out our short online form and receive multiple mortgage proposals from mortgage brokers in Sherbrooke.

New Mortgage Rules in Canada Make Brokers Even More Valuable

Canada’s new policies on mortgages came into effect last November 2016.  But it does not mean the end for mortgage brokers.  In fact, more than ever, mortgage brokers can make sure that consumers avail of the best mortgage rates in the market.

The new mortgage policies are more restrictive and complex such that mortgage brokers can help consumers navigate the difficult process of mortgage applications.  The role of a broker is to advise and assist homeowners from start to finish.

Everybody will be impacted by the new mortgage rules in varying levels.  Banks are currently changing their mortgage products. For instance, refinancing a mortgage now requires 75% of the property value and single family homes and condo financing for purposes of renting out has also become more difficult.

But even if a home buyer has been rejected by one lender, it doesn’t mean they can’t find another lender. Mortgage brokers can help you find the right lender for a mortgage based on your qualifications.

In Quebec province, around 175,000 mortgages are recorded annually with about 30% transacted with a mortgage broker.

Key Benefits of Working with a Mortgage Broker

Clients may desire to renovate or they may wish to consolidate their debts to ease their burden. A mortgage broker can really guide you in finding mortgage solutions that are ideal for your needs.

Mortgage brokers work with different lenders and can give you access to a wide variety of mortgage products and rates from across many lenders.  This is better for you than being stuck with limited options from a single lender or bank.

Because a mortgage broker is not faithful to any particular lender, you are free to choose from any of the lenders he works with based on what is important to you – terms, rates, or flexibility.

More importantly, a mortgage broker will help borrowers have a strategy to qualify for a mortgage and will explain the pros and cons of each mortgage product.

Lastly, your chosen mortgage broker will work hard to get you the best mortgage terms and rates but won’t charge you with professional fees or commissions.

Bank or Mortgage Broker – Who will give you better mortgage rates?

It isn’t surprising that only 30% of mortgages registered in Quebec are through a mortgage broker. People usually think big banks are trustworthy, stable, and reliable. That may well be true but when it comes to mortgages, there are other important factors you need to consider.

Who should you choose when you want to apply for a mortgage?

Mortgage brokers liaise between borrowers and lenders and get paid a commission by the lender.  They don’t really work for anybody but they work in the best interests of their client.  Bound by standards of the OACIQ, they must ensure that the client gets correct advice about mortgages and are made aware of the ins and outs of the mortgage process.

The best advantage you can get from a mortgage broker is more choices.  He can provide you with a wider variety of mortgage options from various lenders so you can choose the best terms and rates.

A bank is limited to its own mortgage products and rates and won’t help you get other options from other lenders.

Mortgage brokers generate a lot of business from lenders and they provide him with lower rates than what they offer a client.  In other words, mortgage rates from brokers beat bank rates any time.

Negotiate Rates before Renewing your Mortgage

Many Sherbrooke mortgages get renewed automatically by homeowners. You see, people don’t relish the thought of haggling with their bank.  Their house is too valuable to them and the thought of having a problem with the mortgage scares most Canadians.

We are not saying it is wrong to be prudent.  However, even a few percentage points off your current rate can mean huge savings down the road.

So if your mortgage is up for renewal, by all means, shop around and compare before you renew. Obtain free mortgage proposals using our short online form and hear what mortgage brokers have to offer.

How to Get Lower Mortgage Rates in Sherbrooke

If you look at published rates, you’ll find that majority of banks post similar rates, increasing and decreasing them in unison. Yet, a survey shows that some borrowers pay higher rates while others get lower rates. So how do you ensure you are one of those that gets the lower rates?  This is important because on a loan of $150,000, you can save as much as $25,000 over the term of your mortgage with a lower interest rate.

Tips to Get Better Mortgage Rates in Sherbrooke

We understand you are excited to buy a house and you want that pre-approval badly. But do resist the urge to get the first bank offer.

1. Never assume that because you are a bank client, you’ll be offered the best rate by your bank. In fact, if you have been doing business with the same bank for years, you are considered to be less sensitive to price. Hence, the bank won’t really feel the need to offer you a lower rate as they might do to woo a new customer.
2. The next step to getting a better mortgage in Sherbrooke is to do comparison shopping. You can partner with a mortgage broker to secure the best rates in town, not necessarily from your own bank.  Research shows that rates from brokers are 32 basis points lower than bank offered rates.
3. Always negotiate before you sign-up for a mortgage. Did you know that with a higher down-payment, you may qualify for a lower interest rate? Further, did you know that a good credit score could qualify you for better rates? Negotiating may not be one of your strong points but a mortgage broker can fight tooth and nail on your behalf.
4. It can be really easy to get lower mortgage rates simply by hiring a mortgage broker. You can save a lot of time and aggravation by letting a mortgage expert find you the right mortgage.

7 Questions That Affect Your Mortgage Rate

It used to be fairly simple to ask mortgage questions such as “What is your best rate?” Nowadays, this question may necessitate more questions.

Because of changed mortgage rules, these questions have become more important when looking for the best mortgage rates.

What is the mortgage term?  

A mortgage term is the length of the mortgage contract and the rate is either fixed or variable. These 2 factors play a huge role in your mortgage rate.  Generally, a 5-year fixed rate would be about 50 points lower than a 5-year variable rate.

Is it for a second home or a primary residence?

A mortgage for a second home or a property where you don’t live but rather rented out is generally higher than for a primary residence.

What is the location of the home?

The location of the home matters to lenders.  Rural areas can get higher rates than urban areas. Some provinces also have higher rates such as New Brunswick, Nunavut, Northwest Territories, Yukon, and Newfoundland.

Are pre-payment restrictions okay?

Lenders generally charge higher rates if you want options for prepayment.  The lowest mortgage rates usually don’t allow for prepayment.

Do you want restrictions on refinancing?

If you want the option to refinance with another lender, you may be charged a higher rate.

Can you live with a big penalty for breaking your mortgage?

The lowest mortgage rates charge big penalties for breaking a mortgage.

How is your credit?

If you have less than perfect credit history, you’ll be charged higher mortgage rates.  Some lenders may not even approve you for a home loan while others will charge you much higher rates if you have negative items on your credit.

What is the percentage of the loan to the home value?

This is another critical question that impacts your mortgage rate.  You may be surprised to know that a bigger down-payment may cost you a higher rate. A borrower with a down-payment below 20% pays for mortgage default insurance and thus costs the bank much less.

A mortgage broker can explain to you the best way to get lower mortgage rates. To get started, fill-out a short online form and connect with the best mortgage brokers in Sherbrooke.

Getting a pre-approval or a mortgage renewal is much easier with free mortgage quotes from licensed Sherbrooke brokers.