First-time home buyers and homeowners in general can have a similar perception of finding a mortgage lender. It’s easy to feel overwhelmed when numerous financial institutions, interest rates, and options are available. There’s also the goal of choosing the best lender based on your specific needs, but a real estate broker with special knowledge in this area can help you make an informed decision. 

In general, a mortgage lender will fall in one of three categories, and it’s important to look beyond the interest rate you might get while selecting a lender.

Confused about how to choose a mortgage lender? Read on to find out more.


Assessing the Different Categories of Lenders

Mortgage lenders in Canada can be categorized into three main types, the first of which is an ‘A’ lender. It can be thought of as a traditional lending option, through which a borrower with a decent credit history and steady income can qualify for a mortgage from the banks and credit unions within this category. Even monoline lenders with a speciality in mortgage loans fall under this category.  

A ‘B’ lender opens the door for those with poorer credit scores or an income that’s unpredictable, which might not qualify them for the first group of lenders.

Private lenders are not a part of the regulated financial sector, and offer lower qualification rates unlike ‘A’ and ‘B’ lenders.

Evaluating Beyond Interest Rate

As the search for a mortgage lender takes place, it’s important to focus on more than just numbers. Keeping aspects like customer service and transparent communication as main factors in your decision-making process will provide a notable benefit down the road. Making payments and dealing with mortgage statements is easier for clients when a lender has a well-run online customer portal. The borrower should also prioritize lenders whose representatives are easy to access in the event of a problem with mortgage payments.

If navigating the real estate market in Toronto is new for you, and you’re in need of more information on how to choose a mortgage specialist, contact Real Pavel today and explore our services.

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