10 Questions you may want to ask your Mortgage Broker
Wondering what important questions your mortgage broker may ask you? Why not be prepared before your meeting. This may come in handy especially if this is your first time meeting a broker.
- Are you able to provide your yearly income?
Your broker will need to be able to prove your income, without it there is no guarantee he will be able to get you the best rate for your situation, along with the best term.
- Where is the home located?
Although our brokerage, Noble Mortgages is situated in Toronto, we offer our services in other cities & provinces, however, there are different rules for different locations.
- How much is the value of the property?
If the home you are purchasing is over $1 million, all lenders depending on the basis points will charge more.
- Credit score
This one is very important as any credit score less than 680 is going to be difficult wherever you go. Before starting the mortgage process, ensure your credit is in good standing. Lenders will make it difficult or even turn you away altogether if your credit score is below the required amount.
- Are you able pass the NEW screening “stress test?”
This was a new rule that took effect October 2017, and has been said to be a tough hurdle to surpass especially for those purchasing a new home for the first time.
- What are the terms?
Our broker will be working with many lenders answering questions such as terms and types of rates offered, so it may not always be so straightforward. However, this is our speciality and we are here to service you.
- What is the mortgage being used for?
This would be one of the first questions our broker at Noble Mortgages would ask. We need to ensure if this is the only loan you will be taking, and if it is not, we need to be certain you can qualify for another mortgage on top of your existing one.
- What type of property are you purchasing?
If you are planning to buy a small one-bedroom condo or a big home in the outskirts, lenders basis points and what they offer will vary.
- Can you handle a high penalty if you break you term?
If you choose to break out of your mortgage contract early, you may be faced with a high penalty, it is best to speak to our broker one on one for more details. However, there are lenders that will have some lower penalty options for you. However, once again, our broker and agents are specialised in finding you the best solution.
- Can I Refinance?
Lenders tend to be strict when it comes to basis points, they have this option available however, there are restrictions attached. They consider this a privilege therefore, our broker and agents are very careful when finding the best option for you.
What is Basis Point (BPS)?
|Basis Points||Percentage Terms|