Mortgage Brokers

Mortgage brokers work as an intermediary between the client and a lender; we are able to offer mortgage rates that clients may not be able to negotiate on their own. Dealing with over 50 lenders give a mortgage broker access to more options, better interest rates plus they have the expertise to help more clients arrange the best financing available based on their specific situations.

Mortgage brokers are paid by the lenders where the loan is placed, there are no fees to use a mortgage broker. Mortgage brokers are fully trained and licensed by the province; true home loan experts. This expertise is one of the primary differences between a mortgage broker and your banker; your bank is not licensed to sell mortgages. This usually means the person you deal with at the bank is not an expert, nor are they always fully trained. So don't be fooled by the claim that the bank has its own mortgage brokers; Banks have mobile mortgage specialists who competes with mortgage brokers to sell that banks products. A mortgage broker works with 50 different lenders; not just one.

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.