Realty Glimpse 12

Pam Lobban
Mortgage Broker, Part Owner
Dominion Lending Grande Prairie

 

Mark – Why would I go see a mortgage broker, vs a bank?

Pam – I think that it just opens so many options for you.  I’m going to collect all your data, your employment history, where you’ve lived for the last three years, I’m going to check your credit, I’m going to be able to advise you on your credit because I’ve seen a lot of credit bureaus, so I can help you fix it a little bit, so that it’s better for you, or it may open up more options, I’m going to do that.  Then I’m going to guide you through the process of being able to get into home ownership, and have a mortgage.

Mark – So is it going to cost me money, because if I go to the bank, it isn’t going to cost me anything.  Is it going to cost consumers money to come and see you.

Pam – No, all our services are free.  Everyone in our office is the same way.  It’s actually a real job of pleasure, because you’re helping people to the biggest purchase of their life, and we’re paid by the lender, so there’s no cost to the client, we are paid a commission with no cost to the client.  It’s win win for both.  Our clients and for us, because I like to get paid.

Mark – so you’re positioned to be on the client’s side really, right?

Pam – Exactly

Mark – So at the end, you don’t say “no”.  There’s no reject complex as you walk out – that you said “no”, because it is the lender that said “no”.  You’re working for them.

Pam – Right, and if the lender does say no, I’m going to try and help you get in that position.  So maybe today you can’t, maybe you haven’t been on your job long enough, or you’ve had some late payments on your credit card, or things like that, I’ll be able to show you what you need to do, so that maybe a year down the road, you can purchase or get a mortgage.

Mark – So, I have a mortgage, say my five year term is just about up, so the bank send me a notice, because maybe I went with the bank, the bank sends me a notice and it says, hey, you can renewed your term, here’s the rate, all this stuff, I simply have to sign it and send it in.  That’s so easy, is there any pitfalls in doing that, is there any reason I wouldn’t do that.

Pam – Well, I feel you should always check.

Mark – Check with who, call them?

Pam – You should check with me, again It’s free, so you should check with me, or any broker, who ever you have a relationship with, and see what the best rate is out there.

Mark – when you say out there, you’re talking about there being more than one lender.

Pam – exactly, and making sure you’re getting the best rate, when you renew with your bank, or lender, because if they can get it by, and charge you right now say 3.09 for a 5-year fixed, and I have 2.59, it’s going to save you money.

Mark – and it could be legitimate from the bank, maybe their position is to have a higher mortgage rate, potentially for that client, because the client has fallen into this box, or…?

Pam – No, not so much,

Mark – so is that the case then, when you have all these lenders, that you’re working with on a daily basis, how may lenders, just roughly,

Pam – Around 40

Mark – So 40 different lenders, some of those could be a bank, perhaps

Pam – Absolutely

Mark – So that bank could say no,  but maybe this lender says yes, maybe there are five or six that say yes, so now its for you to send…

Pam – We might have that option, I might go to three lenders, before I find a lender that says yes, we’re willing to do this.  Depending on the criteria, what the client has.

Mark – so the average home price about, since from January to currently right now, is about $300,000, in Grande Prairie – there’s purchasing power rights now at $300,000, so at .2% interest, how much is that going to cost me a month?

Pam – Well, on a $300,000 mortgage, it’s going to cost you $30, on that .2% difference.

Mark – so $30, it doesn’t sound like a bunch of money right off hand, but when you think $30 times 12, that’s $360 times 10, of course, rarely would it be a 10 year term, but that’s $3,600 at the end of 5 years, that’s $1,800 plus interest, so it can actually add up, so don’t mock 30 bucks.

Pam – exactly, so you want to shop around

Mark – yes, and that’s the advantage, by talking with just one mortgage broker, you are shopping around.

Pam – right, because I have so many different… everybody’s unique, in what their situation is, so finding the exact mortgage that fits them, that fits their needs, and with pre-payment privileges, and penalties… there’s so many things that are involved in it, and a mortgage broker is going to help with that.  And on top of that, you won’t have to wait three weeks to get in and see us

Mark – We’re getting into that, my very last question is what’s the advantage to shopping local, do I get and advantage to getting it out of Edmonton or Vancouver, or where ever, why would I go to a Grande Prairie broker?

Pam – Well, I really believe in local, I support local.

Mark – Do I get a benefit by going elsewhere?

Pam – No, brokers across Canada have all the same lenders, the same rates, everything.  So we can offer exactly the same, as you get the one on one, meeting people…

Mark – Right, they can come and talk with you, they don’t wait three weeks, as you said earlier.