Mortgage Brokers How To Find The Right Mortgage Deal | Page 6

Some Mistakes to Avoid When
Looking for a Mortgage
• Avoid selecting a collateral loan
• The collateral mortgage may help you find a better rate, but you should avoid making this
mistake when the rates' difference is insignificant. In the mortgage industry, you will find
many major lenders, including some chartered banks trying everything to make you opt
for a collateral mortgage. However, there is no need to go for it if you can find the similar
rates for real mortgage program. Going for a collateral loan may be a bit riskier and
expensive because you may have to deal with a legal fee, especially when you decide to
switch lenders.
• Avoid a broker with very high rates
• It is natural that people avoid brokers that may offer very high rates. However, the real
issue is that many brokers would offer a high rate first but they would later make you use
their "match policy" to find a cheaper deal. Such behavior suggests that you are working
with an unscrupulous agent who is more concerned about getting more profits. The
problem is that they make you find a deal yourself and offer you to match it themselves.
• Do not always trust big banks for loans
• Many people think that since they have a good credit score, they are likely to get a better
deal from big banks only. The truth is that you should still consider shopping around and
never stop checking what small lenders have to offer. An important thing to understand is
that mortgage specialists working in the banks usually do not require any license. It
means that if something goes wrong, you will not have any place to file a complaint.
Those licensed mortgage brokers are extremely careful about offering what they promise
or else their license will be at stake. In Ontario, Canada, there are provincial government
organizations taking care of all licensed agents and brokers, so you can file a complaint
with them in case something is not as per your expectations.