How To Avoid Paying $25K In Fees When Setting Up A Mortgage
Updated: May 10, 2022
A question I get asked a lot: Why go through a mortgage agent like myself? Why not just go to your local branch?
Let me tell you how I saved my client $25,000 in mortgage fees.
I got a call from an individual seeking a second opinion.
They had just recently purchased a place and went to their local bank branch to get the mortgage set up. When their meeting was finished, they walked out with the huge weight of $25,000 in mortgage fees.
They were not happy.
After reviewing their situation and asking a lot more questions, I confirmed that the fee was legit. It was a $25,000 CMHC fee (Canada Mortgage and Housing Corporation) that was being charged to them because they were making a down payment of less than 20% of the purchase price of the home. This fee is considered mortgage default insurance, which protects the lender in the event a borrower defaults on their payments, and also benefits parties who aren’t able to pay 20% or more for a down payment.
We continued discussing further, and I asked a lot more questions:
What stage of life is the client in, in terms of their family’s goals and needs?
Where do they plan to be within 5 years and 10 years?
We also closely reviewed their current jobs, career path and income.
With more information, I was able to devise a plan where they came up with the 20% down payment. Working with a mortgage agent like myself allows you to leverage experience. I helped them avoid that $25,000 fee!
Now, this plan was not easy. It took a lot of dedication and hard work. It would take a lot of persistence, but together we were able to formulate a plan to get there. Not only did I save my client $25,000 in fees, but I also helped them save $903 in monthly obligations on their mortgage. That’s a significant savings that will drastically improve the type of lifestyle they can lead in their new home.
If you know anyone who’s looking for a mortgage today and wants to seek a second opinion, have them give me a call.