As the name suggests, a mortgage broker in Hamilton plays the role of an intermediary between creditors and customers in search of loans. The main goal of a mortgage broker is, therefore, to find appropriate loans at the best possible terms for their clients. While banks are the biggest mortgage lenders without the involvement of brokers, many applications are rejected, as they do not meet the loan approval criteria. Many mortgage brokers in Hamilton choose to work with private lenders who are not associated with banks to offer alternative financing to those that were turned down by lending institutions. Our mortgage brokerage is one such company that specialises in private lender mortgages.
Mortgage brokers will listen to a client’s needs, request as many quotes as possible and then make a choice of what they feel would be best. They typically offer services related to setting up a mortgage and guide the customer based on their understanding of the inner workings of the Hamilton mortgage market. Our Mortgage Broker Store has the green light to serve as a mortgage brokerage firm and we have some special services for clients including:
Mortgage Broker Store experts have many years of skilled gained in constantly offering alternative funding solutions to the people of Hamilton. The broker of records in this firm is Ron Alphonso, an acclaimed real estate authority. Top media authorities like Global News and Toronto Life regularly seek his counsel about mortgages and other matters related to real estate. He has also been featured in Toronto Star among others as seen on our media page.
Both professionals have permission to sell mortgages. The main difference is that only a mortgage broker may open a mortgage brokerage. The person in charge of affairs in a mortgage brokerage is the broker of records who also has power to hire other mortgage brokers the principal broker must ensure that records are in order and that everyone follows set regulations.
The most mortgages in Canada are issued by banks but there is a surge of demand for mortgage brokers. Banks have stringent loan approval requirements, which only a few people meet. The rest find a suitable alternative by working with mortgage brokers who can land them good loan packages from non-bank lenders. Owing to their flexibility, most of a mortgage broker’s clients are people with low credit score. Banks still command a big share of the Hamilton mortgage market but that should change if things continue as they are. Currently, mortgage brokers are 45% of first-time homebuyer loans and 40% of initial mortgages.
Residents who meet bank requirements are not charged any fees upfront. For the rest, the fees are determined by the situation. Legal issues such as divorce, inheritance, and power of sale are likely to increase the fees charged. Generally, people looking for private lender mortgages pay $2000 as fees to pay lawyers, broker’s staff and other professionals involved. Private lenders know that their clients pose a high risk and therefore extend mortgage set up fees to them in order to reduce expenses. Mortgage broker fees also depend on the brokerage you approach for help in Hamilton. It is the mortgage broker’s duty to find loans at the cheapest possible rates in the crowded mortgage scene. A broker ensures that the loan given is one that a consumer will be able to repay when the time comes.
Anyone who is interested in becoming a mortgage broker must start out as an agent and maintain their license for a couple of years. After this period, they must pass through the Mortgage Broker Education Program to qualify for a license. The Financial Services Commission of Ontario will only give the license to professionals with an Ontario address and those serving in a licensed brokerage. Everyone that claims to be a mortgage broker must present a valid license from the Financial Services Commission of Ontario (FSCO)