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The Mortgage Checklist - Part 9 (Advice)

If you’re applying for a mortgage, there are some things you will need to know. As a result, we have created a mortgage checklist, so you can ask your lender/broker the right questions. Here is part 9 of 9, featuring questions about advice from your mortgage professional.

Advice

59. What are your qualifications as a mortgage adviser?

How long have you been a mortgage adviser? (The more experience, the less chance for costly mistakes. Look for two years minimum experience.)

Do you specialize in mortgages or are you a generalist who sells many financial products but is a master of none?
Have you closed over $10-million of financing in the last 12 months? (That’s a minimum rule of thumb for professional mortgage advisers.)

Are you the right mortgage adviser for me? (Read this)

60. Given my lifestyle and savings, will you be honest with me about whether I can truly afford this mortgage?

Just because a lender approves you doesn’t mean you can safely afford the payments. Moreover, alternative down payment options may not be worth the trade-offs.

61. What methods will you use to help me pick the right term?

Proper term selection saves you way more than small rate differences, almost every time. Find an adviser that does more than glibly quote industry research or ask if you can “sleep at night” with a variable rate. At a minimum, your adviser should compare the estimated interest cost of various terms, given sample rate increases over the next five years.

62. Will you help me stress test my mortgage?

Be sure you can afford your mortgage if rates jump 2 to 3 per cent.

63. What mortgage strategies will you provide to help me retire faster?

Your mortgage can be used as a key financial planning tool to accelerate your savings, create future equity and build your investment portfolio.