Most lenders will pay a mortgage broker for representing you, so you do not have to pay the broker to help you. The only time you would be required to pay a fee in most cases would be if you use a private lender. Borrowing from a private lender can be a very good strategy depending on what you are buying as the interest rates are much higher. The biggest benefit to private lending is the qualifying qualifications are completely different but usually require a higher percentage of downpayment. I've helped investors and house flippers use private money to leverage a great opportunity to buy a money-making property. Not many people have the capability to buy a house for cash; most people will require a mortgage. Therefore, you not only need to go shopping for a house — you also should go shopping for the best mortgage. You are going to be making a commitment most likely for 5 years, so you want to know everything not just the rate. Another task you should work on before you begin looking for a house is organizing your credit issues. Lenders in Canada use what the call a "Beacon Score" to determine your eligibility to borrow money. A beacon score is otherwise known as a credit score. If your score is too low to get qualified there are ways to increase your score quicker if you learn how to do it. A good mortgage broker can assist you with this.
Getting a Rate Guarantee
So many first-time buyers make a big mistake by not getting a rate guarantee. I think many of these buyers think they are required to buy a home, or they have heard that getting a mortgage approval it lowers their credit score. Most lenders offer a 120-day rate guarantee that doesn't require you to buy anything and during the rate guarantee period if rates go up you are protected and if they go down you get the better rate, you can't lose.
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