Frequently Asked Questions About Mortgage Brokers
When it comes to buying your dream property, it’s essential to work with a professional that understands the mortgage process, has access to the best rates, and can help you read the small print. Hiring a mortgage broker will save you time, money and provide peace of mind as a mortgage is one of the most significant investments you will make in your lifetime.
However, when it comes to mortgage brokers, there are many questions clients have but often find it tricky to get all the answers they seek. For this reason, Jeff Cody wants to arm you with the most accurate information available to help you make informed decisions. To do this, I’ve answered some of the most frequently asked questions about mortgage brokers.
1. Do mortgage brokers charge fees?
Most of the time, mortgage brokers do not charge fees for residential mortgages. The lenders pay mortgage brokers a finders fee on closing, so there is no charge to the client.
2. Who are the lenders for mortgage brokers?
Mortgage brokers have access to many lenders, including banks, insurance companies, mortgage investment corporations (MIC’s), and Monolines. It allows the broker to shop the market for the best mortgage product that suits the client’s needs. It includes the best rates and comes at no cost to the client.
3. Are mortgage brokers regulated?
Yes, mortgage brokers must be licensed by their provincial government and follow strict rules and guidelines.
4. Are mortgage brokers independent?
Yes, mortgage brokers are independent of lenders and work for the best interest of their clients.
5. Do mortgage brokers give the best rates?
Typically, mortgage brokers can get better rates as they are affiliated with parent firms across the county. These brokerages close substantial mortgage volumes, which gives them better rates than if a client were to go directly to a lender.
Lenders also only pay a commission to the broker once the mortgage closes and have fewer overheads, as they don’t have to house extra staff and pay additional salaries. They can pass these savings on to the broker by providing better rates. As a result, it’s like the consumer takes advantage of wholesale rates when they go to a mortgage broker.
If you have any more questions about brokers or would like to secure a mortgage, contact Jeff Cody. As a leading mortgage broker in Ottawa, I can find the perfect mortgage for you as I have over thirty years of management experience in the financial industry. It includes being employed by the Canada Mortgage Housing Corporation (CMHC), liaising with lenders for several trust companies, and working as a mortgage broker for over two decades.