How to Finance Your Home: Banks, Brokers or Credit Unions?

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Feb 28,2019

Tips and Suggestions from Your Toronto Real Estate Professionals


Whether you are buying property for the first time, or you have been in the market before, the process of searching for your dream home, making an offer, winning a bid, and owning a home is always an exciting one. Multiple offers, bidding wars, inflated list prices and unsatisfactory home inspections are just a few of the hurdles that you may face in this journey. However, one aspect that you may want to address early on, is knowing where to finance your home from and finding the most suitable lender.


Traditionally, banks were the ‘go-to’ source for any mortgage requirements. However, thanks to the ever-expanding lending market, this space has seen increased competition and newer entrants, such as mortgage brokers and credit unions. In fact, these avenues have become fairly popular with the mortgage seeking community, giving the banks’ home finance teams a good run for their money.


Tips To Choose the Right Mortgage Lender

If you are wondering how to finance your home and which source to approach, you are not alone. Most Toronto home buyers find it challenging to decide what will work best for them. Here are some factors that may help you decide what will suit your requirements.


Shop and Manage Finances under One Roof

If you usually prefer to carry out all your financial transactions from a single service provider, then it is best to apply for a home loan from your bank or credit union. Not only do have an existing relationship with them, but they also offer multiple services under one-roof. From bank accounts and credit cards, to home loans, car loans and repayment schedules, you have the convenience of tracking and managing all your finances at a single source. Moreover, since they already have much of your financial information on record, it makes the application process for the home loan less tedious and time consuming. Some of the other advantages of choosing banks or credit unions are:

  • They routinely offer secondary finance options, such as home equity loans to their existing customers.
  • They do not sell your loan to other lenders, saving you the hassle of missed payments, or changing payment details to another company or location.
  • You have the option for in-person contact if you walk into a branch.
  • Your existing banking relationship could be useful in getting special rates and privileges on your mortgage.


Shop Best Rates and Features across the Market

If you are keen to explore the entire market and get the best possible features and rates, mortgage brokers are your best bet. Essentially, they are licensed specialists, who have access to multiple lenders, and will shop on your behalf for the most suitable match to your requirements, including the cheapest rates. While banks will share details on their own products alone, mortgage brokers are more knowledgeable about multiple options and will offer insightful comparisons. Due to their relationships with numerous lenders, they are in a position to advise you about the lenders who will be most amenable to your specific application. This is particularly useful if you have problems, such as adverse credit history, or inadequate documentation. Since mortgage brokers deal in high quantities of mortgage products, they also get bulk discounts from the lenders, which are usually passed on to their clients directly.


Choose the Right Source to Finance Your Home

Every lending source that offers home finance has its advantages and disadvantages. Based on your priorities and preferences, choose the source that works best for you. No matter what option you choose, when you are ready to own a piece of real estate in Toronto, look no further than Home & Condo Market Brokerage. Specializing in buying and selling properties in Etobicoke and the Greater Toronto Area, we can be an excellent partner in your home buying journey. Our qualified and knowledgeable agents will scout for listings, show you several options and negotiate the best prices to help you acquire your dream property.


Explore the Toronto housing market with the help of our proactive, customer-focused  agents. To schedule a consult, call us at 416-551-5020 or contact us online.