A mortgage broker is a licensed professional who acts as an intermediary between lenders and borrowers.
Bank agents and mortgage specialists also try to act as go-betweens for borrowers, however, they can only work with the specific bank or lending institution that employs them.
Mortgage brokers don’t work for banks or lenders. They only work for you.
How can a mortgage broker help?
A mortgage broker assists you in finding and securing a mortgage.
A mortgage broker spends time and effort conducting research and negotiations to find the best deals and opportunities for clients. A mortgage broker compares different rates, payment plans, property value appraisals, and objectively evaluates potential lenders.
Large brokerages like the Mortgage Broker Store have a large and diverse network of real estate agents, brokers and lenders that they can rely on to find new investment opportunities for their clients. They do all this research and networking while maintaining a personalized service experience for their clients. They can also pass on discounts to their clients due to the high volume of mortgage products they manage at a time.
In the latest report from Canada Mortgage and Housing Corporation, about half of all homebuyers in Canada used a mortgage broker to negotiate their mortgage. The main reasons these buyers gave for selecting a mortgage broker were better interest rates, saved time, and high-quality advice.
How is a mortgage broker different from a bank mortgage specialist?
Bank agents and mortgage specialists are employees of the bank. Their job is to convince customers to purchase a mortgage from their bank, even if it is not the best mortgage available in the marketplace. They aren’t allowed to consider other lenders in the market which puts bank agents and mortgage specialists at a competitive disadvantage compared to mortgage brokers.
Mortgage brokers work with multiple mortgage lenders. Mortgage brokers can objectively research all lenders in the marketplace. Therefore, they can find more competitive offers and negotiate mortgages more effectively on behalf of their clients.
Mortgage brokers are entirely dependent on client satisfaction and referrals and have gained a reputation for exceptional customer service, especially when walking clients through the mortgage process.
Are Mortgage Broker Services Free?
Mortgage broker services are free to you, the homebuyer, if they find you a mortgage from a bank. In that case, the bank pays the mortgage broker fee.
If a mortgage broker finds a mortgage for you from a non-bank lender like a trust company, credit union, or private lender, then you must pay a broker fee.
Typically, mortgage broker service fees are based on a small percentage of the total value of the mortgage, and on the type of mortgage such as a second mortgage, reverse mortgage or home equity loan.
How to Find a Good Mortgage Broker in Guelph
Organizations like The Mortgage Broker Store have become the premier destination for homebuyers looking for knowledge and advice on how to get the house they want.
Explore your options with a free quote or advice from a dedicated mortgage broker at the Mortgage Broker Store. With the fastest mortgage approval in Ontario, you can cut the unnecessary red tape and get right to the business of finding a home that fits your lifestyle.