Donald Trump and Mortgage Brokers
Well if Donald Trump says you should, then maybe you should.
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I happened to pick up the book “Think like a billionaire” written by Donald Trump with Meredith McIver the other day. The book was quite interesting and I sure liked the way it was written, small one to two page sub chapters so I didn’t have to concentrate too hard.
There was a very informative chapter on real estate and included discussions on hiring Realtors, Lawyers, how to buy a house and obviously one I found very interesting, “how to pick a mortgage broker”.
The chapter starts out by saying “A good way to get a mortgage is to pass the buck to somebody else. Shopping around and comparing mortgages can be time-consuming, so it may save you time to pay someone to do the shopping for you.” He goes on to say, “Get a mortgage broker, but get a good one”.
Caveat: While Mr. Trump gives the indication that you have to pay for a mortgage broker, the fact in Canada is that you typically don’t have to pay for their services. Mortgage brokers are paid by the financial institutions. Unless you are using unconventional financing sources, there is generally no reason you will have to pay for the services of a mortgage broker.
What I found quite interesting is that even at his level of real estate, “The Donald” still appears to rely on mortgage brokers to get his mortgages and why not?
Consumers in the United States are much more verse with using mortgage brokers. In the US, approximately 76% of those looking for a mortgage use a mortgage broker. In Canada, that number is only about 26%. The low rate is partially due to the fact that while mortgage brokers have been around for a while, it was never a really organized group until about 10 years ago.
Your time is valuable, and if you think about it, you probably have better things to do then shop around for a mortgage. My suggestion, find a mortgage broker your comfortable with, and let them do the work, there’s no cost, and you’ll likely find a better overall mortgage.
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