Questions to Ask Your Mortgage Professional

It’s no secret that the Okanagan real estate market is hot, with very low inventory and even higher demand. So, if you’re ready to begin the search for your perfect property, the first step is to make sure you’ve obtained a mortgage pre-approval, so you have a realistic budget on hand to base your search off of and the ability to move quickly with an offer. I won’t dive too deep into the process, as it’s best to chat with a trusted mortgage professional, however, I will offer a few questions you can ask to ensure you’re doing your due diligence in educating yourself.


Should I work with a mortgage broker or lender?

A mortgage broker is a licensed professional who has access to a variety of lenders. This means they’ll be able to shop the current market for you and negotiate the best mortgage for your individual needs. Alternatively, mortgage lenders work with a specific bank or financial institution, which may benefit you if you’d like to work with a branch or location that you know and trust.


How much should my down payment be?

Contrary to popular belief, you don’t necessarily need a 20% down payment. Your mortgage professional will help you determine the best plan of action for the down payment amount that makes the most sense for your financial circumstances. Be aware that if your down payment is less than 20%, you will be subject to Canadian Mortgage and Housing Corporation fees.


Should I secure a fixed or variable loan?

Historically, variable interest rate mortgages have been lower than fixed rates. But with us currently experiencing unprecedented times, you’ll want to thoroughly review all your rate options with your mortgage broker.


Do a mortgage broker cost me anything?

Typically, there is no fee for you to use a mortgage broker, as the broker gets paid by the lender or financial institution who ends up providing you with the mortgage product you choose. However, you will still want to ask this question, just to make sure there is no other arrangement you would be responsible for paying.


What are pre-payment penalties?

Sometimes there are “hidden” fees if you attempt to make additional payments on your mortgage, so 

make sure you read all the fine print and ask your mortgage professional any additional questions that you need clarity on. If there is a penalty or additional fees, determine how much the penalty will be, what the terms are for the prepayment, and whether you’ll be charged a penalty if you choose to refinance your mortgage in the future.


Once your pre-approval is in hand, we can begin the exciting journey of finding you the home that checks all the boxes on your list of must-have features! Connect with me for us to get started together.


Staci Champagne 

250.718.7851⠀⠀

staci.champagne@gmail.com

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