July 22, 2023
How to Choose the Right Mortgage Lender: Key Factors to Consider
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Manzeel is an award-winning Mortgage Broker and the Owner of the Toronto-based mortgage, Everything Mortgages.
With 16 years of experience in the Canadian mortgage industry and a formal background in mortgage underwriting, Manzeel’s lending expertise gives him unique insight into whether a deal is feasible which empowers his clients to make more informed lending decisions faster.
He has been recognized as one of Canada’s Top 10 Mortgage Brokers by the national Canadian Mortgage Professionals (CMP) Association. Him and his team of 18 mortgage agents are proud to offer a mortgage experience that's built on honesty, trust, and integrity. He prides himself on the brokerage’s dedication to deliver an excellent client experience throughout the entire home loan process from pre-approval to post-funding.
Since moving to Toronto in 1998, Manzeel has successfully launched and scaled several businesses from the ground up, ranging from a mortgage brokerage and a vast real estate investment portfolio to a private financing eCommerce platform. He continues to be a leader in the real estate industry as he uses his analytical expertise to seek new real estate investment opportunities.
As a tech junkie and avid sports enthusiast, when Manzeel’s not working with clients, you can find him reading technology blogs, playing squash or watching tennis with his two boys.
The decision to buy a home is monumental in both personal and financial aspects. As homes often become one of your largest assets, making the right choice in selecting your mortgage lender is of paramount importance. Over $182 billion was loaned for mortgages last year, so how do you find the lender that’s best for you? Consider these key factors when choosing mortgage lenders.
Interest Rates & APR: The attractiveness of a mortgage lender often starts with their interest rates. Look for those offering competitive rates, understanding that your eligibility for these rates will depend on your financial circumstances. Remember to ask not only about the interest rate but also about the annual percentage rate (APR), which accounts for other costs like broker fees and credit charges.
Loan Products & Terms: Different lenders offer various loan products with specific terms. Some require a 20% down payment, while others are more flexible. Make sure the loan term suits your needs; a shorter term means higher monthly payments but less interest over time, and longer-term results in lower monthly payments but more interest overall.
Fees: Beyond interest rates and terms, you need to understand the fees associated with your mortgage. These can include commissions, origination fees, appraisal fees, credit report fees, and optional discount points. Request a Loan Estimate (LE) to get a solid understanding of what costs you might incur.
Type of Lender & Service: Lenders can range from large national institutions, local banks, and credit unions, to online lenders. Each has its pros and cons in terms of rates, customer service, and loan processing time.s. Online lenders can often offer lower rates due to reduced overhead costs, but they may lack the personalized service of a local bank
Online vs. In-person Interaction: Some lenders offer a fully online application process, which can save you time and potentially money. Others might require more traditional, in-person interactions. Consider your comfort level with online applications and your desire for face-to-face support when choosing your lender.
Reviews & References: Before committing to a lender, do your due diligence. Ask friends and family for their experiences, and look for online reviews to get a broader sense of the lender’s reputation.
Time to Close: The time it takes to close a loan can vary depending on the lender and specific circumstances. Ask your potential lenders about their usual closing times, and consider opting for pre-approval to expedite the process.
Consider a Broker: If all of this seems overwhelming, consider employing a broker. They can help you navigate the range of lenders and negotiate better deals. However, make sure to research and find a reputable broker.
In conclusion, the choice of a mortgage lender should be a comprehensive decision, not based solely on the offered interest rate. Shop around, ask plenty of questions, and consider fees, terms, and your unique needs and circumstances. Your dream home deserves the perfect mortgage, and we are here to assist you in making the right decision.
For first-time homebuyers or individuals with unique financial circumstances that don’t qualify for a conventional loan, we recommend exploring options with private lenders. With a little research and our dedicated team on your side, you can find the right mortgage lender and set yourself up for success
At Everything Mortgages, our licensed team of experts is ready to help you find the mortgage solution that’s right for you. We’re driven not just by securing loans but making a significant difference. Whether you’re a first-time homebuyer, a small business owner in need of a better solution, or a hardworking professional seeking freedom from high-interest debt, we strive to help you become mortgage-free sooner and build wealth faster.
*Note: This article is intended for informational purposes only and does not constitute financial advice. Please consult a financial advisor or mortgage professional before making decisions about your mortgage.
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