You’re about to purchase a home in Canada, but first, you need to find a mortgage specialist. While this can seem overwhelming, you can make the process easier by following some tips.

1. Use a Mortgage Broker

Many Canadians wonder if they should use a broker or a bank when securing a mortgage. If you go to a bank, you’ll be crossing your fingers, hoping the institution provides the best rates. Also, if the bank denies you, you’ll have to start over with another lender. Mortgage brokers will put your file in front of multiple lenders, and you’ll only have to undergo one credit check. This makes it easier to get the best rate, and you won’t have to fill out nearly as much paperwork.

2. Avoid Shadow Lenders

Shadow lenders take on riskier clients, and in exchange, charge huge interest rates that are often four times higher than prime loans offered by banks. Because investors finance these loans, the lenders aren’t regulated in the same way mortgage lenders are. Use a legitimate financial institution, or you could end up losing your home due to high interest rates.

3. Don’t Forget Credit Unions

Credit unions are a good alternative for homebuyers who can’t pass the financial stress test imposed by Canada’s large banks. Many credit unions still offer competitive interest rates, but since they don’t require the financial stress test, it’s easier to secure a mortgage.

4. Choose Someone Who Plans for the Future

Mortgage specialists should think of the future when negotiating your mortgage rate. What will occur if rates go up? What if you lose your job? This all needs to be taken into consideration.

5. Make Sure the Specialist Gives Good Advice

Your broker won’t be able to predict the future, but he or she can look at historical data to help you choose between a fixed or a variable interest rate mortgage. If he or she tries to push for one over the other without backing it up with data, it’s time to move on.

6. Evaluate the Broker’s Lenders

It’s important to check out the broker’s lending network before signing on. Make sure the broker uses reputable and accredited lenders.

7. Choose a Broker Who Communicates Well

Most of the work happens behind the scenes, but you still need a broker with good communication skills. Your broker should be able to talk to you in a way you understand. That way, you will be in the loop during the entire process.

8. Meet the Broker in Person

If possible, meet the broker in person and see if you click. Your broker doesn’t have to be your best friend, but if you click with him or her, it’ll be easier for the process to go smoothly.

Get Started Today

It might take some time to find the perfect mortgage specialist, but once you do, you’ll be pleased with the results. Put the legwork in, so you’ll end up with someone who is in your corner, fighting to get the best rates for your loan.