What exactly is a mortgage broker?

Details of what an agent can offer

We are inundated constantly with so much information on so many topics that it can be exhausting to keep it all straight. Add this to the fact that realistically most of us only go through the mortgage process a few times in our lives so you only have to know it very briefly before getting back to real life. On top of both of too much information and not doing it often is the fact that a mortgage involves your home and your finances making it it a potential hotbed of stress.

It really is no wonder that many Canadians are not totally familiar with what exactly a mortgage broker does and why they should even consider them. Let’s take a look and why you should give them a call next time you are in the mortgage process.

1. What is a mortgage broker? A mortgage broker is an individual who has taken their provincially administered course and passed an exam allowing them to deal in mortgages. From there they are watched forever by their provincial regulatory association to make sure your best interests are always protected. You as a consumer can file a complaint should you need to and I can assure you it is taken very seriously by these associations.

2. What do they do exactly? They take your application and gather all the necessary documentation for the mortgage lender. They submit to the lender they see as having the best product for you and work as a go between you and the lender until they know you have full approval for the mortgage.

3. Who pays them? Usually it is the banks and the mortgages lenders but in some cases you pay them directly though you would know this well ahead of time. The commission a mortgage broker makes is budgeted for by these companies. It is a normal cost of business and can be paid to the broker or to the bank employee and the net effect is the same to you the consumer.

4. Why would you consider using a mortgage broker? They have access to a wide variety of mortgage lenders. Considering that every situation is slightly unique, it can be a relief knowing that if ‘Bank A’ says no to your application that there are many more the mortgage broker can present your application to without you having to make appointments with each.

5. What if you want a bank you know? Mortgage brokers deal with many of the main banks in Canada but often do a much higher volume than you doing just your own mortgage. They can get better rates and often faster turnaround.

6. Are they safe? You bet! This group is watched carefully by the regulators.

7. Aren’t they just for people with bad credit? Heck no!

• Self employed

• Owning more than one property

• Normal folks looking for their best mortgage

• Going through the separation process

• Investors

• Builders

• Credit challenges

• And on and on…

Mortgage brokers have made the Canadian mortgage market competitive which means lower rates for you and more money in your pocket at the end of the day. According to a CMHC survey, approximately 51% of first time home buyers chose to go through a mortgage broker. They know the pitfalls you need to avoid. Mortgage brokers are a great resource to save you money both now and down the road as well as saving you time and reducing your stress overall. Considering your debt is the largest debt you will ever take on, it just makes sense to ensure you are getting the best mortgage rate and terms possible for your situation.

Pam Pikkert is a mortgage broker with Dominion Lending Centres – Regional Mortgage Group in Red Deer.

Just Posted

Kings and Queens sweep Briercrest

RDC basketball is begining to gear up for the ACAC playoffs

WATCH: Setters Place officially opens in advance of the 2019 Canada Games

Red Deer is one step closer to the 2019 Canada Winter Games the opening of Setters Place

City council approves operating budget to a tune of $364 million

The 2.02% hike includes 1% for capital investment and 0.11% for the carbon tax

Province not providing aid to Red Deer for its June storm

Cause of storm wasn’t ‘extraordinary’ according to province

UPDATE: Two taken into custody after shots fired in Riverside Meadows

Red Deer RCMP believe incident was targeted attack

WATCH: Alberta Party leadership candidates present visions to Red Deerians

Party members will vote for their new leader on Feb. 7th

Two Canadians, two Americans abducted in Nigeria are freed

Kidnapping for ransom is common in Nigeria, especially on the Kaduna to Abuja highway

Are you ready for some wrestling? WWE’s ‘Raw’ marks 25 years

WWE flagship show is set to mark its 25th anniversary on Monday

John ‘Chick’ Webster, believed to be oldest living former NHL player, dies

Webster died Thursday at his home in Mattawa, Ont., where he had resided since 1969

Bad timing: Shutdown spoils Trump’s one-year festivities

Trump spends day trying to hash out a deal with Senate Minority Leader Chuck Schumer

Las Vegas shooter acted alone, exact motive still undetermined: Sheriff

Stephen Paddock was behind the gunfire that killed 58 people including two Canadians

Botox, bomb shelters, and the blues: one year into Trump presidency

A look into life in Washington since Trump’s inauguration

Suspected Toronto serial killer targeting gay community arrested

A 66-year-old man is charged with first-degree murder in disappearance of two Toronto men

Barenaked Ladies, Steven Page, to be inducted into Canadian Music Hall of Fame

Canadian band to get top honours at 2018 JUNO Awards

Most Read