Mortgage Agents Catching On With Canadians

A recent study done by the Canadian Mortgage and Housing Corporation found that more Canadians are taking advantage of the mortgage financing services provided by mortgage agents. While back in 1998 less than 10% of all residential mortgages were obtained using mortgage agents, today that number has grown to over 30%.

First time home buyers make up the largest group of Canadians taking advantage of the services being provided by mortgage agents, with almost 40% using agents to acquire their first mortgage. In contrast however, only 10% of Canadians renewing their mortgage used a mortgage agent to shop around for a better deal. The other 90% simply stayed with their current lender, often accepting the first offer they received.

The aforementioned study also found that only half the Canadian respondents knew what role mortgage agent’s played in obtaining mortgage financing. Of those respondents actually familiar with mortgage agents, many thought incorrectly that mortgage agents charged fees directly to the consumer for their services, when in reality mortgage agent’s work for the client but are paid by the lending institution.

So it seems that while many Canadians are slowly catching on to the benefits of working with a mortgage agent, many others are still relatively unfamiliar with the profession and the services available to them. Unfortunately, the end result of this is that many Canadians are needlessly paying higher interest rates and thousands of extra dollars in interest payments over the life of their mortgages.

Today’s diverse and competitive mortgage marketplace makes it essential for Canadians to shop around for the best mortgage rates and terms available to them at any given time. Whether you are purchasing your first home, renewing your mortgage or refinancing, these should all be seen as opportunities to shop around.

By: Domenic Mirabelli

Article Directory: http://www.articledashboard.com

Domenic Mirabelli Mortgage Agent Lic # M10000364 Morcan Financial Inc. 416.303.4480 dmirabelli@morcan.ca