Discussions

Hello,  
Am a first time buyer, I would like people opinions about getting mortgage.  
The pros and cons of using bank or broker?  
What should I look for? You know all these small prints and some hidden costs and soon.  
Thanks for your contributions.

We went to a broker, but they weren't able to get us a mortgage as my wife was still on probation at her new job. We went to a credit union, and they pre approved us within 15 minutes.  
 
Remember that as a first time home buyer, you can withdraw money from your RRSP to use as a down payment. There is no penalty, you just have to pay it back over the next 15 years.

If I can ask, which credit union did you go to?  
And what about if you are not member of the credit union?  
thanks

Sunrise. I don't know how much history they need. I had an account from when I was a kid that I hadn't used in 15 years.

It sometimes helps to deal with the bank that you have a relationship with. We generally have, and we'll bargain and dicker with them to get the rate we want. They want to keep your business, after all.

I would recommend not to take out the mortgage insurance with your mortgage. Take out a seperate life insurance policy(s) that covers at least the term of your mortgage. With mortgage insurance if you started with a $100,000 mortgage and after 15 years you had $25,000 left and you or your partner if this will be joint, dies, then the mortgage insurance will just pay out $25,000. However, if you take out a seperate life insurance policy for $100,000 (on each of you if you have a partner) and you or your partner dies, you would get $100,000, $25,000 to pay off your mortgage and $75,000 to do with as you need, funeral, living costs etc. Our monthly insurance payments are only $15 more for $250,000 insurance for each of us than what we initiallly had with the bank for half the coverage and that payout number decreased.  
 
Edited by CG42, 2016-04-19 14:33:14

Mortgage brokers are great if you are a strong candidate as they will find you the best rates/terms. But, it you are weaker, go to a credit union, Vanguard is very good.

Call Chris at Centum Mortgage Choice, he'll be able to help you out!!

Don't take the insurance. Get a separate policy for more than the mortgage.  
 
Also DON'T do the cash back mortgage if offered. The cash is nice, especially in a new home but... You'll pay a higher rate so you end up losing money. Did that for my first one and learned the hard way!

A bank will only give you THEIR current rate. Chris and the staff at Centum will go TO the banks, and have them compete to give YOU the LOWEST rate. We saved thousands on our current mortgage, compared to what our bank wanted to give us. The staff will meet you anytime, anywhere to help get you the best possible deal. The best part is, Centum won't charge you a dime. Centum has a great staff, great atmosphere. Chris is an amazing person who will LISTEN to the customer. He is also a heck of a snappy dresser! Call Centum at 727 2177. It is the ONLY call you will need to make.  
 
Edited by Mr B, 2016-04-19 17:46:14

Sent you a PM