Why These Questions Matter
The mortgage world can feel like a maze when you're buying a home. A good broker walks you through it — but before you settle on one, you need to know what to ask.
Below are the 10 questions that clear the fog and help you understand what you're paying, what you can afford, and how the whole thing actually works.
1. What Do You Charge?
Get the terms clear from the start. In most cases you'll only pay legal fees — the lender pays the broker — but it's worth confirming so there are no surprises.
2. What Can I Actually Afford?
Before you start touring properties, know your budget. You'll share your financial information with your broker, and they'll come back with a number that makes sense for you.
3. Which Loan Type Is Right for Me?
Your broker should recommend the loan options that suit your situation. They've gone through your finances and they know the industry — their advice is reliable.
4. How Does Approval Actually Work?
After you're pre-qualified, the next step is a formal application. You'll look at properties, submit your application, and once your offer is accepted, your broker will walk you through what comes next.
5. Can I Lock My Rate?
Interest rates move around. A rate lock protects you from higher rates while you finalize the purchase. Ask if there's a fee to lock, and whether the lock covers all your loan costs or just the rate.
6. What Are All the Costs?
A mortgage carries more than just the loan itself. There are lender fees, recording fees, third-party vendor fees, title policy, credit reports, taxes, and appraisals. Get an accurate estimate in the Loan Estimate document with everything spelled out.
7. How Can I Save on Interest?
There are ways to cut what you pay over time. A bigger down payment lowers your mortgage amount and often gets you a better rate. Ask your broker what options you have.
8. What Will Closing Cost Me?
Your loan payment is split into two stages: first you pay interest, then you start paying down the principal. At closing, you're also responsible for appraisal, legal costs, transfer taxes, underwriting fees, and recording fees. Know the number so you can plan and avoid surprises.
9. Is There a Penalty If I Pay Early?
A prepayment penalty can be expensive if you pay your mortgage off before the term ends. Ask what the penalty is and how long it's in effect. Some are short-term — clarify with your broker so you know what you're signing.
10. How Long Will This Take?
Your broker knows the timeline. You'll need to submit financial documents like bank statements and pay stubs. Ask if there are any obstacles that could delay closing, and get a sense of when you should expect your closing day.
Find a Broker Who Answers All of This
You're not expected to be a mortgage expert — that's what your broker is for. Stay curious about anything you don't understand, and find someone who meets your needs and stays patient with you.
If you want to talk through your situation, reach out to [Matt Broom-Hall](mailto:sayhello@hellomortgage.ca) at Hello Mortgage Team.
