Bargaining and give and take have been sewn into the fabric of how we interact with each other. We do it most of the time without even knowing it. But there are those times when we may not have the confidence to do it because what we may be dealing with may be really unknown to us.
A particular situation where this is likely to happen is when there is money involved; mainly in the case of buying real estate and procuring a mortgage loan. That’s because getting a mortgage is often frightening which causes us to seek someone qualified to help us; a mortgage loan broker in Ontario perhaps.
We put out trust in this mortgage broker’s ability and seem to never question when this fee pops up or that cost materializes. We just believe everything our mortgage broker says wholeheartedly.
But who put it in stone that we couldn’t negotiate with our mortgage broker in Ontario?
Are mortgage brokers so scarce and in demand that we must adhere to their every suggestion or perish?
Of course, the answer is no which tells me that we all hold the leverage to hire the mortgage home loan broker that is within our budget. Knowing a little about the business of being a mortgage broker may help us in bargaining to get what we want.
At the top of the list is the fact that a mortgage broker are different than a car salesman who wants to get your money. They hold your interests in higher regards than they do that of any mortgage lender in Ontario and they are certainly not going to reveal the secrets that could keep money in their pockets by putting less in theirs. Of course, if you knew how to negotiate with them you would be at an advantage being in the mortgage industry.
Another point of concern could be that some mortgage brokers only says they are brokers, when in fact they work for the bank and can only offer a banking product. These bank brokers loan money from their own particular bank to fund for people’s mortgages on residential properties in Ontario. This is something that we all should pay attention to because as a bank this broke isn’t subject to penalties enforced on those who don’t follow FSRA guidelines. Not having to follow this opens people up to hollow promises in some instances.
A mortgage loan broker should be in a position implied by the named broker. Having the option of providing several different mortgage packages from various lenders should be one of their strengths. You may run into brokers who won’t like the fact that you know something about mortgage products. If this happens quickly on in your discussions, bid this broker a good day, before you get into anything more, because clearly, this type of broker may not right for you.
Consider focusing on two key things that could save you a little money in the acquisition of your mortgage home loan. First, try to negotiate with your mortgage broker to pay only one to one point five percent of the loan amount in origination fees. Try to couple that with only paying about $400 in mortgage loan processing fees. This should help lower the overall cost of getting your home mortgage.
But don’t get ecstatic if your mortgage broker readily agrees to this. Why? Have you ever heard of a yield spread premium and how it connects with mortgage loans? A “YSP” is a markup on your mortgage interest rate added on by your broker. Some mortgage lenders only use that to pad their pockets. Some advice; avoid paying the YSP at all costs.
In this article, you have just learned a few points of negotiating that can be used in developing a better outcome where negotiating fees and mortgage interest rates are concerned. Make sure you use these and other questions that you find online to ensure your success in obtaining your ideal mortgage loan.