With Internet, shopping for mortgages and comparing rates from various mortgage companies has never been easier. Consumers know to look for low rates and all of the top mortgage websites try to show them exactly that. Unfortunately, with the vast amount of the information available and inability for every website to maintain it properly, much of the information out there can be weeks or months out of date.
Likewise, the tendency for Internet companies to sell your information makes putting your personal information online dangerous. So who do you trust?
Trustworthy Internet companies take your privacy very seriously. For all companies that you deal with online, view their privacy policy. A privacy policy outlines a company's commitment to maintaining your own personal privacy while using their services. Shady and otherwise untrustworthy companies have questionably vague privacy policies, and may very well sell the private information that you provide them to third parties. This information can be used for anything from unsolicited advertising to identity theft. For this reason, it's very important to choose a company that does not sell your information and is compliant with the Government of Canada PIPEDA regulations. If your browser supports it, much of this information can be quickly obtained through P3P, saving you valuable time.
The practice of mortgage brokering is regulated in many jurisdictions. In most provinces it's illegal to act as a mortgage broker or agent without being licensed by the province's regulatory agency. The same applies to lending institutions operating in Canada. So when shopping for mortgage rates online and choosing a company, make sure that the rates you're looking at are on mortgage products actually available to you, and that the company offering them is licensed nationally or in your province so that they can legally provide mortgage services for you.
The BBB rating of a company can indicate its legitimacy and service level. Outstanding complaints and a poor BBB rating should be a red flag for questionable business practices. When dealing with large sums of money, it's especially important to guarantee that you are not being taken. Looking for companies that have an A+ rating with the Better Business Bureau narrows the number of companies down quite quickly, and will help you ensure that you meet minimal resistance getting your mortgage financed.
Great Canadian mortgage brokers will provide a lot of detail about each product available and the rates available through their company. They won't hesitate to show you with whom they do business, as their business relationships are essential to sourcing out the best and lowest mortgage rates. Choosing a mortgage product will be a decision based on the rate, mortgage features and your familiarity with lending institutions. It's important to find a mortgage professional who knows their business and who can give you the maximum number of options to choose from.
While choosing a bank for its reputation might initially seem like the most sound decision, don't make the mistake of believing that they are the best source for mortgages in Canada. Banks try to offer their clients posted rates, which are typically 1.50% higher than rates provided by great brokers. Sticking with a broker when shopping for a mortgage will ensure that you receive the best mortgages and rates in Canada.