Are you shopping for a mortgage?
As you could imagine, we often get the call from a prospective client saying “What is your best rate?” I hear a lot of people in my industry frustrated dealing with this question as it is a clear sign that the person on the other end of the phone is planning on talking to their bank or another broker.
Personally, I love this call and this question.
It is my feeling that our industry as a whole has done a very poor job of educating those requiring a mortgage. How can we possibly be upset or frustrated when people calling for our best rates as this is all they see advertised or talked about… It’s simply all most people know to ask!
At SMG, we believe you should shop around for a mortgage. It is one of the biggest financial decisions of your life! That being said, we believe you should shop around for a mortgage with more ammo and better questions than just “What’s your best rate”. We believe rate is very important but it is just one part of the mortgage. A great rate with a poor strategy or even worse, no strategy is a sure fire way to pay more interest and penalty’s in the long run.
Here are a few questions we suggest you ask when shopping around
If your bank or broker cannot confidently answer these questions you should consider moving on…
- What are mortgage interest rates based on?
- How will rising interest rates in the coming years effect me even if I take a fixed rate mortgage?
- What strategy are you recommending and why?
- What commitment are you giving me to personally manage my mortgage over the long term?
If your broker or bank answers all these questions in a way that gives you the confidence that you are in good hands to reach your financial goals then look no further.