Have you tried lately to get a pre-approved mortgage? The traditional mortgage lenders' focus has changed to selling the RRSP. Trying to get an appointment with your banker will be difficult. Why not get the same pre-approved mortgage from one of Ottawa's professional mortgage Brokers? Usually it costs nothing but a little time. Their business is to service your mortgage needs, and the rate they can get often beats the Bank's posted rate. The Mortgage Broker does not take RRSP applications or open up bank accounts!

You may not know that the mortgage Broker gets you mortgage money from the traditional sources such as Banks, Trust Companies, Mortgage Companies and Life Insurance Companies. During this very busy RRSP season, the mortgage Broker knows to shop for your mortgage along the electronic highway. Most of them are linked to several lenders "on line". The approval process is very quick (usually within 24 hours). The mortgage Broker does all the work a traditional lender would do, only they work strictly for you, not necessarily for the lending source. These veteran lenders (most of them used to work for lending institutions) know where to get you the best rate, know how to negotiate the best prepayment privileges, and have the experience to answer the many questions you must have without making you feel rushed.

The mortgage Broker does not work for any builder or real estate Agent, but can negotiate mortgages no matter where or what you decide to buy. How does he/she get paid? Normally, as well as getting you a rate discount, the lending institution also pays the Broker a commission. The lender can afford to pay this commission because the Broker did all the work. The Lenders' staff did not have to take the time to interview you, the Client, nor did they have to take the time
 

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to answer a whole bunch of questions. Since the Lender saved time (and time is money), the commission is payable to the Broker.

In some cases, a commission is not payable by the lender (open mortgages, bad credit, etc). If this is the case, you would be charged a fee by the Broker. Normally, the fee is quoted up front, but cannot be collected until after the deal has been approved by the lender, and accepted by you. Usually the mortgage Broker comes to you for the interview, so you can feel at home shopping for that mortgage.

Mortgage rates have not been this low in 25 years, now is the time to buy that house. Do set up an appointment with one of Ottawa's professional mortgage Brokers and find out just how easy and quick your pre-approved mortgage can be.

For the interview, the Broker will ask you to provide him/her with copies of the last two years income tax return (or "assessment notice" from Revenu Canada), copies of job letters from your employer (stating how long you have been there, what it is you do for them, and how much you get paid), verification of your down payment (if any), and a signed mortgage application (which he/she will provide). This is the same stuff you would have to provide your Banker. The Broker can answer some basic questions at this stage.

The next time you see your Broker, usually within 24 hours, he/she will present you with your pre-approved mortgage certificate. . You may present this certificate to your builder or real estate Agent. It will indicate how much mortgage you can afford, at what rate, and how long the rate is guaranteed. It won't do you much good to have a 60 day rate guarantee if your purchase is due to close in 100 days.