Mortgage brokers and consultants are licensed professionals who work closely with clients to assist in understanding their financing options, completing the application process and closing loans from various lenders such as big banks, credit unions, caisses populaires, trust companies and private mortgage lending companies.
Mortgage specialists often emphasize cross-selling products like lines of credit, insurance and RRSPs in an attempt to increase sales for buyers who may prefer dealing with someone familiar at their bank. This approach can be beneficial to buyers who find comfort dealing with an experienced professional rather than dealing with unknown individuals in banks directly.
Qualifications
Mortgage brokers must fulfill several qualifications to be considered eligible for this role. At minimum, they should be high school graduates or possessing a GED certificate. Furthermore, mortgage brokers need to possess superior reading comprehension abilities as well as be adept at understanding complex loan products and regulations pertaining to loan products as well as possess a firm grasp on math concepts.
Mortgage brokers who work for mortgage brokerage firms gain access to an expansive network of lenders nationwide, including all six of Canada’s major banks (RBC, TD, Scotiabank, BMO, CIBC and National Bank of Canada), in addition to private mortgage lending institutions.
Mortgage brokers have the advantage of being able to compare various mortgage rates in order to find their clients the most beneficial deal, rather than working directly with lenders, who often only offer products they offer themselves. Furthermore, brokers may negotiate with lenders in order to reduce or waive certain fees such as application and appraisal fees.
Experience
Mortgage brokers (often called licensed mortgage professionals in provincial jurisdictions) specialize in connecting borrowers and lenders. They may work independently or join a brokerage; the latter option offers benefits like limited personal liability and management flexibility; however, not all brokerages provide equal support, training, or resources.
Brokers require extensive knowledge of both the mortgage industry and financial matters, along with strong mathematical abilities. Furthermore, their job requires them to quickly process numbers as mortgage brokers often spend considerable time reviewing clients’ credit histories and income statements before providing advice or services.
Mortgage brokers should have the expertise to assess client financial needs and recommend suitable products, including terms and interest rates for mortgage loans. Furthermore, brokers are required to submit various documents with every application – this may include employment agreements and income/expense statements as part of this process.
Licenses
Mortgage brokers are licensed professionals who assist home buyers by negotiating mortgage terms and conditions on their behalf, helping with application forms and paperwork as well as offering advice about which type of loan would best meet the borrower’s financial goals and budget. Mortgage brokers must comply with all local regulations which may differ between provinces.
Mortgage brokers provide access to multiple lenders, unlike banks who tend to only use their own products in-house. Mortgage brokers are expert at helping first-time borrowers, self-employed people and others in special situations find suitable mortgages with competitive rates and terms. Furthermore, brokers have knowledge about all of the various kinds of loans currently available and their respective interest rates.
Once mortgage brokers meet the entry-level educational requirements for their profession, they should select a company/brokerage that provides training, support and work style that matches their preferences. For residents оf Canada’s largest city, there are numerous Toronto mortgage brokers and consultants tо choose from. From there they should complete licensing/registration procedures and launch their new careers!
Fees
Mortgage brokers perform much of the legwork on behalf of borrowers, having established relationships with major Canadian mortgage lenders and banks as well as understanding of various home loan products available and government programs such as first-time buyers programs or buydowns.
Mortgage brokers should always be forthcoming about their fees and compensation arrangements, including any lender perks or incentives they might receive that could influence their recommendations for you.
Mortgage brokers generally must act in your best interests, so it’s unlikely they would recommend products that don’t suit you best. However, if the lender pays them or there is another fee arrangement with them that gives them incentive to “churn” your mortgage renewal when renewal time rolls around – costing you money down the road. To protect yourself against this happening to you, always opt for a reputable broker that discloses their fees upfront and clearly explains them to you.