December 3, 2019
Home ownership might be one of the most controversial topics in the modern world. There is a lot of divide whether you need to buy a home or renting might be enough. Those who want to rent have various reasons, but the most common is that they will not stay there for long. This option is great for those who need to transfer from place to place because of the parent’s job or living situation. It is seen as more affordable because you only need to pay a smaller amount of money every month. If you are not happy, then you could just move to another place. Read about why renting is good on this link.
However, there are more people who would really like to live in a house with their name on it. This can be seen as an accomplishment by the provider of the family. It also provides comfort and security to the people who will be living in it. After all, it is already under your family name and no one can take that away from you. There are also those who believe that owning a house is a good investment for the future. The price of various properties increase every single year, and it would be best if you already own one now.
On the other hand, no one can deny that buying a house is quite expensive. Depending on where you live in Canada, a simple bungalow with a small lot could cost you up to CA$ 850,000. That is a lot of money, and you cannot pay that all in one go. It’s either you are a multimillionaire, or you just got very lucky in a casino or something. Even then, nobody wants to put out that much money. Although it is for a place that you will probably live in for the rest of your life, it can really hurt your wallet. Click here to learn how to save money for a house: https://www.businessinsider.com/how-to-save-money-for-a-house-automatic.
Loans For Everyone
This is why a lot of people are into looking for loans that can help them mitigate this cost. Of course, you still need to give a down payment, but it is so much lower than the actual price. Then you can take a loan for the rest of the amount. If this was the previous century, then the banks would be your only option. The only ones that you have a choice is the branch or bank that you are going to take the loan from. However, we are in the modern world and there are also modern solutions available.
Let us first start with the bank, as this is still the most popular option. Most banking systems would usually offer their own packages for you to decide which ones are for you. They can give a bit of advice on how to manage your finances. However, unless you already have made a connection in your bank, then they might not even assist you at all. Mortgage lenders have been rising in popularity ever since the turn of the decade. These are third party personnel that can help you find loan programs with less interests. If you are looking for something more specific like Vancouver mortgages, then they can help you with that as well.
Here in Vancouver, both of these options are viable. Both of them can give you the loan that you need to acquire that money and buy a house that you want for your family. However, as you may have seen prior, there are some major differences between the two.
Differences Between Banking And Mortgage Loaning
1. Loan Requirements
It is a well-known fact that compared to the two, banks are stricter with the ones who will be approved for a loan. Most banks have international clients and partnerships, so they need to have a more thorough investigation as to who they are going to give their money. This means that this could take a lot more time and you will need to submit a lot of requirements. It can be tedious, but it is how most banks work because they need to set a standard.
This is not insinuating that mortgage lenders have a lower standard or quality of service. However, they can find loans which may have a more lenient set of requirements. This is especially for those with poor credit scores but still needs to have a loan. They might also be able to obtain any kind of loan yet because of personal reasons. Some of them just don’t trust “big corporations” like banks. Even though this is not true, they need to find something which would ease their minds. Having a loan expert is one of them.
2. Kinds of Loans
Most banks would offer what they would have as a service. Usually, they would have limited options and they wouldn’t want you to go to another bank either. If they do, that is going to defeat the purpose of their bank in the first place. They can give you the best offer, but it is usually the only one that they have which would fit your needs.
On the other hand, mortgage lenders can find the offer that you would want in almost any organization around town. They are not here to dupe you since they are supposed to be registered under a commission before they can even do the service. Most of them will have connections with various organizations which can offer financial support. With this, they can find the lowest interest rates for the best properties around town.
3. Financial Advice
A bank can give you great advice on how to use your finances and invest wisely. However, they are usually focused on the entire picture. This is great, if that is what you need at the current moment. However, they do not have the mortgage expertise that a lender would have. Sure, they would be familiar with it, but they would usually not give you a clear picture. This is not because they are incompetent but they have another area where they excel at. Mortgage loans might not be on their line.