What is a Mortgage Broker?
A mortgage broker is an independent licensed home loan expert whose primary role is to assist and represent clients in arranging the right loan for their specific situation. For most of our clients, this includes finding the lowest current mortgage rates in Canada; for others who are more difficult to finance it is simply a matter of finding the right lender to assist them with their financing needs. With so many options available to clients today it can be overwhelming and at times confusing, having the a mortgage broker assist you in finding the right mortgage for you only makes sense; especially when you consider all fees for our services are paid by the lender.
A mortgage broker works for you, not the lending institution. This is the primary difference between dealing with us and your bank. We are not trying to increase bank profits, sell products with bigger margins or cross sell you more lucrative bank products; a mortgage broker's only job is to find you the best mortgage product for your specific and unique situation. We want to earn your business with great service, expertise and of course the best Canadian mortgage rates!
How Does a Mortgage Broker Get Better Rates?
A mortgage broker handles hundreds of mortgage inquiries a year. Lenders know this and realize that by trying to gain a percentage of that business they need to aggressively solicit the brokers business by offering the banks best wholesale mortgage rates. The banks broker center is a source of attracting large numbers of new clients to the bank every year, so basically the mortgage is simply a loss leader to get the clients in the door.
Often banks are forced to compete against lenders with lower operating costs, or cheaper sources of mortgage funds which of course benefits the clients as well. In the retail channel through the branch however they don't have to try to compete with these other lenders as they rely on customer loyalty to drive their mortgage business.
How Does a Mortgage Broker Get Paid?
When a mortgage broker arranges your mortgage through a lender, that lender than pays the mortgage broker a referral fee. The broker is performing the a number of the duties that would have to be handled in house, this is why the cost of the brokers fees don't need to be added to the mortgage; its a cost the bank would have had regardless.
The only type of loans where there are broker fees are on private mortgages. The private lender will charge a placement fee to the client and out of that fee the broker will be paid a percentage. So indirectly the broker is charging the client a fee for the mortgage.
Canada Mortgage Brokers
Call one of our Canada Mortgage Brokers today, or apply online for a Free Pre-Approval today.
