Here’s what you need to know about mortgage trends, common pitfalls, and how to position yourself for the best rates and terms.

Mortgage Broker vs. Bank: Which One Should You Choose?

Many homebuyers default to their bank for mortgage financing. But is that the best move?

The Difference:

• A mortgage specialist works for a single bank and can only offer that institution’s products.

• A mortgage broker has access to over 60 lenders, including major banks, alternative lenders, and private financing.

Why Work with a Broker?

• More choices mean better rates and more flexible terms.

• Brokers can help with complex situations, including self-employed borrowers or those with lower credit scores.

• Their services are usually free—brokers are paid by the lender, not the borrower.

Why Mortgage Pre-Approvals Matter More Than Ever

Skipping the pre-approval process can lead to headaches later. A pre-approval gives you a clear budget and locks in your rate for up to 120 days.

A proper pre-approval should include:

✔️ A full review of income, down payment, and credit history
 ✔️ A credit check to uncover errors or potential fraud
 ✔️ A firm confirmation of how much you can borrow (not just an estimate)

Big mistake to avoid: Getting a "verbal approval" at a bank based on rough numbers. Always ensure your financials are verified before house hunting.

Mortgage Renewal Mistakes That Cost Homeowners Thousands

If your mortgage is up for renewal, don’t just accept the first offer from your lender. Many banks send renewal notices with uncompetitive rates, knowing that most borrowers will renew without shopping around.

How to get the best renewal deal:

• Start shopping at least 4–6 months before your term ends.

• Compare rates from different lenders—don’t assume your bank’s offer is the best.

• Work with a mortgage broker to negotiate better terms.

• Consider whether a shorter term or a variable rate mortgage could save you money if rates drop in the coming months.

Key advantage of switching lenders: If rates decrease before your new term starts, your broker can adjust your rate downward—something most banks won’t do.

What Happens If Mortgage Rates Drop After You Lock In?

Good news: If you’ve secured a pre-approval or renewal with a broker, you’re protected in both directions.

• If rates increase, your rate stays locked at the lower amount.

• If rates drop, your broker can adjust your rate right up until closing.

Many banks won’t do this—once you sign a renewal offer, you’re locked in even if better rates become available.

Reverse Mortgages: A Growing Trend for Seniors

More seniors are choosing to stay in their homes instead of downsizing. A reverse mortgage allows homeowners aged 55+ to access home equity without selling.

How it works:

• Borrow up to 55% of your home’s value

• No monthly payments—the loan is repaid when the home is sold

• Funds can be used for home improvements, in-home care, or gifting money to children

It’s becoming an increasingly popular way for seniors to maintain financial stability while remaining in their homes.

Helping Your Kids Buy a Home: Gift or Co-Sign?

With home prices at record highs, many parents are stepping in to help their children buy their first home. But how you structure that help matters.

Options:

✔️ Gifting a down payment – No tax implications and no repayment required.
 ✔️ Co-signing the mortgage – Boosts buying power but puts your credit and finances at risk.

Biggest mistake: Parents co-signing without a legal agreement. If a relationship breaks down or a financial hardship occurs, it can get messy fast. A notary can draft an agreement outlining ownership shares and repayment expectations.

Rate Shopping: Why It’s Worth the Effort

Many borrowers avoid rate shopping because they worry about multiple credit checks. But credit agencies allow multiple mortgage inquiries within 30 days without negatively impacting your score.

Why it’s worth getting multiple quotes:

• A 0.5% difference in your mortgage rate can save you thousands over time.

• Some lenders offer better rates to new clients than existing customers.

• Mortgage brokers can compare multiple lenders using one credit check.

What’s Next for Mortgage Rates?

Fixed mortgage rates have been gradually decreasing, and financial experts predict further declines in 2025. Some are expecting rate cuts of 1.5–2% over the next 12–18 months.

What does this mean for you?

✔️ If you’re buying, consider a shorter-term fixed rate or a variable rate mortgage to take advantage of future decreases.
 ✔️ If your mortgage renewal is coming up, start comparing rates now to lock in the best deal.

Final Thoughts

Mortgages are about more than just interest rates. Choosing the right lender, mortgage type, and term can save you money and provide financial flexibility.

If you have questions or want to explore your options, we highly suggest contacting Eric Cyrenne who can provide expert advice tailored to your situation.