Shop Around for your Mortgage

Your mortgage is likely the most important debt that you will take on in your lifetime. It is therefore important that you look for a mortgage with the most beneficial conditions, which will save you money.

Lenders

Mortgages are available from several types of lenders such as banks, mortgage companies, insurance companies, trust and loan companies, credit unions and caisses populaires. Different lenders may have different prices and conditions for similar products, so you should talk to several lenders to make sure you're getting the best product for your needs.

Mortgage brokers

You can also obtain a mortgage through a mortgage broker. Rather than lending money directly to you, brokers arrange transactions by finding a lender for you. Since brokers have access to a number of lenders, this may give you a wider range of loan products and terms to choose from. However, since mortgage brokers do not all have access to the same financial institutions, they may not be able to offer you the same kind of product. Consequently, you should consider contacting more than one broker, just as you should with banks and other financial institutions.

Some lending institutions may pay brokers' fees. If a broker cannot find you a product that is better than the one at your institution, you are free to shop elsewhere.

To obtain a list of mortgage brokers in your area, visit the Web site of the Canadian Institute of Mortgage Brokers and Lenders, or call them (toll-free) at 1-888-442-4625.

If you obtain your mortgage through a broker, remember that the consumer protection measures outlined in this document will only apply if the lender is regulated by the federal government. For a complete list of federally regulated financial institutions, visit the Web site of the Office of the Superintendent of Financial Institutions.

For information about the consumer protection measures that apply to provincially regulated financial institutions, please contact your provincial government.

Ask the right questions

When you shop around at various financial institutions and mortgage brokers, you should obtain the information you need to compare products and avoid any surprises, before committing yourself to a contract.

Find out more about the New Concept Mortgages.

Source: FCAC
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