Who are mortgage brokers and who do they work for? The question is one I hear a lot these days. Here in Canada, about 25 per cent of mortgages originate through mortgage brokers (versus about 75 per cent of mortgage dealers in the United States and Europe).

Most people just walk into their local bank and fill out the paperwork and believe they received the best deal.

Well, the best deal for you, or for the bank?

When you walk into the bank, you will be shown only the products the bank has to offer. With the vast number of lenders and mortgage options available today, this strategy just doesn’t make sense anymore.

You will never know what other options are available without working with a qualified mortgage broker.

You see, as a mortgage broker, I don’t only deal with the major banks but also banks that specialize in mortgage lending.

With all these options available to you through a mortgage broker’s resources, you can be assured that you will receive the best rates and mortgage products to match your individual credit and financial situation.

In the past, it was thought that only those who had poor credit ratings sought the help of a mortgage broker to obtain a home loan.

Today’s educated borrower realizes that utilizing the services of a mortgage broker will not only save them time and aggravation, but in most cases save them a substantial amount of money throughout the term of their mortgage.

Mortgage brokers work with borrowers of all credit types and specialize in being able to find a mortgage of any size and type on any given day.

Further to this, most mortgage brokers will work with their clients on credit issues to improve their ability to obtain financing.

They connect you to a lender and help you navigate through the steps the lender requires of you as well.

You are much better off going through a mortgage broker and letting them do the legwork to find you the best deal available.

It’s like having an advocate on your side during the lending process.

Remember, a mortgage broker will take whatever time is necessary for you to fully understand all the options and requirements for mortgages.

The mortgage broker’s experience will be able to identify the positives and negatives associated with all the mortgage options available to you.
The mortgage broker is a negotiator and will make your case to the appropriate lenders if your situation should contain some financial or credit challenges.

In most cases, the mortgage broker’s negotiations will result in better terms or rates for those in situations that leave them not up to bank quality.

There is also a misconception that a mortgage broker costs you money.

In 90 per cent of cases, a mortgage broker is paid by the lender based on the dollar amount of the mortgage.

In cases where he/she has to go to a private lender, or a lender who does not provide compensation for the mortgage broker’s service, payment is made by clients and taken out of the mortgage’s proceeds.

If you are being charged for the services of a mortgage broker, ask if they are also being paid by the lender. An ethical mortgage broker will not double-end on payment received.

Mortgage brokers build their business on referrals, providing personalized service and education to their clients, which larger banks are just simply unable to provide.

Because of this, you can rest assured that your mortgage broker has your best interests in mind with everything they do.

Most mortgage brokers will work with you and your schedule. We know how busy you are without the added inconvenience of a 9 a.m. to 5 p.m. window to get mortgage advice.

If you can’t come to the mortgage broker, the mortgage broker will come to you.

By providing you with the “one-stop shopping,” a mortgage broker can get you a good deal and educate you along the way.

If you are looking for a mortgage, discuss your needs with a mortgage broker and see what kind of deal they can offer you — you might be pleasantly surprised at the results.

So let’s recap. Who should use the services of a mortgage broker?

Everyone from the investor looking to use the equity in their home for further investments, to the self entrepreneur who needs someone to understand what running a business is all about and the financial challenges that go hand in hand.

The first-time homebuyer will find a wealth of information and mortgage products through a mortgage broker.

Such buyers will find options like purchasing with no down payment, cashback mortgages — and even debt consolidation programs which will enable a purchase in the near future.


Contact a qualified mortgage broker and see why more and more people have discovered that using a mortgage broker just makes sense.