A mortgage broker in Ontario is a person who acts as a middleman between consumers and mortgage lenders. The goal of a mortgage broker is to connect their clients with banks or other lenders that offer the best solution for the needs of the particular client. In Ontario, most first mortgages are provided directly by the banks, without the involvement of a mortgage broker. The Ontario mortgage broker industry developed in order to better service the needs of people who have been turned down by banks. Most Canadian mortgage agents and brokers today specialise in connecting their clients with private “non-bank” lenders. Our mortgage brokers in Ontario focus exclusively on private lending services that are aimed at people who cannot go to banks.
A standard mortgage broker in Ontario will primarily offer services related to setting up a mortgage. A mortgage broker can consult with you on your options and request mortgage quotes from different lenders before deciding on a particular lender. Mortgage brokers have in-depth industry knowledge and can help you get the best rates and terms on your mortgage.
Our mortgage brokerage, “Mortgage Broker Store” is licensed to deal with mortgages in Ontario and has a few niche specialisations which include:
The staff at Mortgage Broker Store has over 7 years of experience in providing alternative financing solutions. The principal broker, Ron Alphonso, is considered an expert in the mortgage industry. Ron has been featured in many media outlets such as Toronto Life, Toronto Star, Global News, and others seen on our media page.
Mortgage brokers in Ontario and mortgage agents in Ontario are people who are licensed to sell mortgages to consumers. Both mortgage brokers and mortgage agent can sell mortgages, however only a mortgage broker has the ability to run a mortgage brokerage. A mortgage brokerage can have more than one broker, but the broker that runs the brokerage is referred to as the principal broker or broker of record. The broker of record must ensure that the brokerage’s documents are in order and that the agents comply with all regulations.
In Canada, historically banks have been the main providers of mortgages. Today, mortgage brokers are commonplace and they are able to offer a wider selection of financing options than banks. Many mortgage brokers specialise in non-bank mortgages. Mortgage brokers are able to negotiate competitive mortgage rates with their lender network. People who have been turned away by banks make up the majority of mortgage broker clients. While banks continue to be the main source of mortgages, the use of mortgage brokers is on the rise. Today mortgage brokerages set up around 40% of new mortgages and 45% of mortgages for people buying a new home.
The fees charged by a mortgage broker depend on the needs of the particular client. For people that meet the bank’s lending criteria, mortgage brokers will typically not charge any upfront fees. For mortgages involving banks, the lender is paid directly by the bank when the mortgage closes. For people that cannot meet the banks’ requirements, upfront fees are typically charged by the broker or lender or both. For deals involving private lenders, a minimum of $2000 must be paid in order to set up the mortgage. The fees will increase if the borrower is in a complex legal situation such as divorce, inheritance, or power of sale. The fees in a private mortgage are used to pay the broker and lender’s staff, the real estate lawyers, and the property appraisal.
All mortgage brokers must be licensed by the Financial Services Commission of Ontario (FSCO) in order to carry out business as a broker. To be licensed in Ontario also requires that a person has an Ontario address and work under a licensed mortgage brokerage. All brokers must start out as a mortgage agent and maintain a mortgage agent license for 2 years before applying to be a broker. The mortgage broker can receive their license after passing the FSCO approved Mortgage Broker Education Program.