Why Choose a Real Estate Team With a Mortgage Specialist?

There’s a lot on your plate when planning a big move. With guidance, it won’t be long until you get to the fun part where you begin your new life in Uxbridge, Ontario. However, first you have to get through the practical aspects of buying a home. This requires a solid foundation and understanding of the financing process.

Today, we’ll take a deep dive into the world of residential mortgages, navigating interest rates, and why you might want to consider working with a real estate team with an in-house mortgage specialist

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The Benefit of Representation

If we had to choose two words to perfectly sum up the value of working with a real estate team with a mortgage expert, they would be “fiduciary duty.” When you sign with a brokerage to either buy or sell a home, you enter into a unique relationship.

Each member of that team is legally bound to represent your best interests as a client, including the mortgage agent. This means guiding you through each step of your transaction and giving you the information you need to make the best decisions at every turn. Our role is to find the right house in the best location at a fair price and at the most favourable terms possible.

Since The Cindy Wood Team includes a mortgage specialist, we also ensure you choose the best type of mortgage at a competitive rate. Often, we will have access to rates you cannot get directly from a bank. If you are self-employed or work on commission, we will advocate to obtain financing for you even if traditional lenders have put obstacles in your path.

All of us will be here with accurate, unbiased information to allow you to proceed with confidence, from understanding the difference between pre-qualification and pre-approval to finding the right home and crafting a compelling offer.

Are you looking for even more insight into the home-buying process? Start by reading the related posts below:

Your Crash Course in Mortgages in Canada

Choosing the right type of mortgage is similar to deciding on a house. Each situation is different, and the various mortgage products come with distinct advantages and disadvantages. With that in mind, here are some of the types of mortgages in Canada that we will guide you through.

Fixed-Rate Mortgages

A fixed-rate mortgage is when your interest rate is locked in for the entire duration of your term. The rate is influenced by Canadian bond yields and is unaffected by Bank of Canada announcements, although they often trend in the same direction.

The advantage of a fixed-rate mortgage is that since your rate is locked in, you know what your payments will be each month. If rates increase, your payments will stay the same for the entire term.
The disadvantage is also that your rate is locked in. If rates decrease, your payments will still stay the same.

This stability can be a catch-22. You are protected for the duration of your term against hikes, but what if rates drop substantially?

One option is to consider refinancing. However, this path is not without drawbacks as fixed-rate mortgages tend to come with stiffer penalties for breaking the contract early.

Variable-Rate Mortgages

Variable-rate mortgages are directly tied to the prime rate set by the Bank of Canada. Since there’s usually an announcement every few months or so, your rate can change often.

Sometimes, it works in your favour. Rates drop, and you enjoy lower payments for a time. When rates increase, you will have to buckle up for higher monthly payments.

Are you still on the fence as to where your new house should be? Wonder no more! Here are a few reasons why we love Uxbridge, and we are sure you will too:

Weighing Your Options

Choosing a mortgage type may seem simple. A risk-taker might opt for a variable-rate because there’s a good chance of saving some money over time. Someone who prefers more stability might lean toward a fixed-rate because then there are no surprises.

The truth, however, is far more nuanced than you can imagine. There’s a reason why mortgage brokers complete stringent training and certification through the Financial Services Regulatory Authority of Ontario.

Real estate transactions are complex, and mortgage regulations are even more so. To ensure clients make the best possible decisions, a mortgage consultant has to understand all of it from every angle.

Historically speaking, variable rates have been lower than fixed rates. Still, it’s important to understand that just because something has been generally true does not mean it will always be the case. In recent years, inflation and economic instability have caused a significant spike in variable rates.

Do you have questions about financing your new home? Get the answers you need by booking a meeting with our in-house mortgage specialist.

Taking in the Whole Picture

Before finalizing on a mortgage product, it’s essential to factor in everything. For example, variable-rate mortgages might seem to be a better choice if you don’t like the idea of being locked in. But let’s look at it from another angle. What if the fixed rates are at a historical low at the time you decide to purchase? If that happens, it might be a good idea to lock it in, even if you are the type of person who likes to live on the edge.

If rates are high but expected to drop, a variable-rate mortgage might be the best option, even for the risk-averse. Remember that one of the primary benefits of variable mortgages is their flexibility. Penalties for breaking the contract early tend to be less severe than with a fixed-rate term. If the volatility of your variable mortgage becomes too much to handle, you may be able to make a change later on without drastic consequences.

So much goes into financing the purchase of a home, and we have barely begun to scratch the surface. We could talk for days about high-ratio loans, conventional mortgages, bridge financing, HELOCs, and more.

When working with a real estate team with an in-house mortgage expert, you no longer have to worry about trying to think of everything all at once. We are here to guide you through the entire process and choose the best financial solution for your unique needs.

Are you still wondering about how to find a good mortgage broker or what questions to ask a mortgage broker? Get in touch with our Uxbridge real estate agents today and we will help you hit the ground running. Send an email to Cindy@Cindywood.ca or call 905.852.6143 to get started.