Mortgage Broker: 5 Things to Look for in a Mortgage Broker

A home purchase is full of emotions and uncertainty. That being the case, you must spend some time understanding what you are looking for when seeking a mortgage broker. Your mortgage professional is one of the key team members you will assemble to assist you in providing advice and securing the right mortgage. Before I get into what you should look for, a little about me. My name is Brighton Gbarazia, and I’m a mortgage broker in Chilliwack and the author of Master Your Mortgage: What the Bank Won’t Tell You About Buying the Right Home. I assist clients throughout the province of British Columbia to help them save money and time when getting a mortgage.

Finding the right mortgage professional to work with is essential because this is the biggest debt you will take on. Your mortgage has lasting implications for the type of lifestyle you and your family will be able to have. You need to find someone you can trust and knowledgeable about mortgages while appreciating the implications of the mortgage debt on your life. Here are five things you should look for when selecting your mortgage broker.

The Mortgage Broker Should Demonstrates Trustworthy Characteristics 

Whenever money is involved, it’s crucial the people you are working with can be trusted. When you are looking for a mortgage broker, you must be able to trust the individual. If you have any reason not to trust the person, the relationship will not work.

Spend some time talking to the person about your goals and objective regarding your purchase. Evaluate if they understand your goals based on the type of answer they provide. If the individual appears to have trustworthy characteristics, move to do your own research to confirm the information they said about themselves or their advice.

Confirm they are licensed in British Columbia as a Mortgage Broker

In the province of British Columbia, mortgage brokers and sub mortgage brokers must be registered with the BC Financial Services and Authority (BCFSA). Before I show you how to confirm if someone or a brokerage is registered, let me explain the difference between a mortgage broker and a sub mortgage broker.

The mortgage broker is the actual brokerage, while the sub mortgage broker is the individual you work with and is often referred to in public as “mortgage broker.” Make sure the individual is a licensed sub mortgage broker that works for a licensed mortgage broker (brokerage)

To confirm if a mortgage broker or sub mortgage broker is licensed, visit this link and type in the sub mortgage broker name or the mortgage broker name.

Ensure to look for any conditions or restrictions placed with the individual or brokerage approval. Check that the sub mortgage broker registration is still active and valid while also ensuring the brokerage they advised they work for is also who you see as their brokerage.

Note it is common to see some restrictions on the brokerage, such as not being authorized to handle trust funds. However, there shouldn’t be a restriction on the sub mortgage broker. If there is, get details on why before proceeding. You can also call BCFSA directly to get details at 604-660-3555 or email them at info@bcfsa.ca.

The Mortgage Broker Should act in a Fiduciary Manner (puts your interest first)

This builds on the trust theme. Fiduciary means the mortgage professional owes a duty to you to act in good faith and trust. Someone can appear to display trustworthy characteristics but may not necessarily work in a trustworthy manner.

Once the home purchase process starts, it’s important to keep an eye on the type of advice you are getting about your mortgage options. The mortgage professional you select should keep your goals and objectives in mind and provide you with the right advice and mortgage solutions in your best interest.

You’re looking for a person who provides you with the best advice that will work for you and not someone trying to push advice that favors them at your expense.

They Should be Knowledgeable and Experienced Mortgage Broker

There’s no point in working with someone who isn’t knowledgeable about the subject matter you need assistance with.

Focus on assessing the individual on their knowledge based on things you can confirm, not what they say. For example, all mortgage professionals in British Columbia need to complete and pass the UBC Mortgage Broker in British Columbia Course. Therefore, if they show up as licensed professionals, you know they have taken a basic step towards increasing their knowledge. But don’t stop there.

Ask them some open-ended questions about real estate and mortgages.

Instead of asking about rates. Ask them to tell you about their first home purchase. Ask them to tell you about what they recently did on their most recent personal renewal and why they chose to do what they did. You want open-ended questions as they are harder to prepare for, and you can tell when someone knows a subject matter and when someone is making something up.

Most mortgage brokers are prepared for the common questions about rates, fixed or variable, etc. Therefore, use open-ended questions to avoid getting scripted or well-prepared answers.

Remember, the most knowledgeable and experienced person is not necessarily the one who’s been in the game the longest but the one who knows their knowledge and experience limitations and is willing to admit that.

They Offer Value Added Services to Help with Mortgage Brokering Services

In the 2021 Mortgage Consumer Survey Results, 42% of consumers advised using a mortgage broker to negotiate their mortgage. Furthermore, 85% felt that mortgage brokers would get them the best rate or deal. According to The Canadian Real Estate Association (CREA), Canada’s national average home price was a little over $746,000 in April 2022.

More and more of our incomes are going towards putting a roof over ahead.

The typical mortgage process for most people is that they look for a mortgage broker and then get the mortgage. After the mortgage has been funded, they occasionally get a birthday email once a year. A few months before their mortgage is up for renewal, they are emailed about it by the mortgage professional.

Let me repeat the average home price number is $746,000. You don’t just want a mortgage broker to get you the mortgage. In today’s increasing home prices, you want to find a broker that can offer additional services to help get the right mortgage.

I’m speaking for services that often don’t get discussed, such as budgeting.

For example, clients who work with me get access to my monthly newsletter and webinars about real estate I host throughout the year. My clients are not just looking to get a mortgage from me; they also would like to be kept updated on all things mortgages and learn how they can improve their overall financial life. If you would like to join my monthly newsletter insider mailing list, sign up below.

For first-time homebuyers, I offer free consultations in which we discuss all things about owning a home, including budgeting for their first home. First-time homebuyers also get a copy of my book Master Your Mortgage: What the Bank Won’t Tell You About Buying the Right Home for free in preparation for their purchase.

The point I’m making is to look for someone looking to add additional value that will help you beyond just getting the mortgage. When you find such an individual, you get far more value than someone who only focuses on just getting your mortgage.

Move the Conversation Beyond Rates

You will notice I didn’t mention anything about rates or mortgage products. Often people focus on rates because getting a good rate matters. However, what’s far more critical is working with someone who will spend the time to understand your goals and objectives, and then once that’s done, look for the right solution that makes sense; sometimes, the right solution might not be the lowest rate. Spend your time finding someone who is trustworthy, will act in your best interest, is knowledgeable, and looks to add additional value to help you get rid of your mortgage as quickly as possible.

If you would like to work with me on your mortgage goals, you may contact me directly at 604-394-2078 or apply directly here.