A mortgage broker as the name suggests is the negotiator who connects consumers with lenders of the mortgages they seek. It is the main role of a mortgage broker in Brampton to find loans at the best terms and conditions on behalf of their clients. Banks are no doubt the biggest lender of mortgages in the country but many people fall below the minimum requirements. Such consumers must seek alternative financing, which they can only access with help from a broker. Most mortgage brokers in Brampton choose to work with non-bank lenders so that they can negotiate ideal terms of a loan for people with poor credit ratings. Our mortgage brokerage specialises in lending services for individuals who have been turned down by the banks and institutional lenders.
Services Provided by Mortgage Brokers and the Focus of Our Brokerage
Mortgage brokers generally provide services related to setting up the loan. This includes listening to your needs in order to look for appropriate quotes. Once these are in, the mortgage broker will choose one for you according to the information shared about your needs and intended purpose for the money. Owing to their vast experience, mortgage brokers can easily find an appropriate loan for each individual and at the best possible payment terms and fees.
Mortgage Broker Store is licensed to serve as a mortgage brokerage in Brampton. In additional to the traditional services we also specialise in:
- Stopping a Power of Sale or Foreclosure
- Second Mortgage
- Home Equity Loans
- Private Lender Mortgages
- Bad Credit Mortgages
- Debt Consolidation Loans
Our staff at Mortgage Broker Store have been in the industry for many years and are now under the principal broker, Ron Alphonso. This is a common name in the Canadian real estate sector who constantly features in media like Toronto Star and Global News to offer insights. He has been actively offering alternative financial solutions to people in Brampton and continues to do so today.
What are the Differences Between Mortgage Brokers and Mortgage Agents
While a broker and agent are all allowed to sell mortgages there some limitations on what roles an agent can play. Only a broker is allowed to open a mortgage brokerage and if they do, the title changes to broker of record or principal broker. The person running a mortgage brokerage can hire brokers to work in his wing but they remain responsible for documents and ensuring that the Ontario Mortgage Act and other regulations are met.
Comparing Banks with Mortgage Brokers
Banks in Canada have been the leading giver of mortgages since time immemorial but things are changing. Mortgage brokers are gaining traction in the market by offering a bigger range of products for all sorts of clients. They specifically negotiate loans with private lenders who are not governed by the same approval rules as banks. This is why a big chunk of mortgage broker clients is people with bad credit. Banks may still hold a major market share but it has emerged that 40% of new mortgages and 45% of loans to people buying the first home in Canada are arranged by mortgage brokers. If the trend keeps up, mortgage brokers and banks will soon be at par when it comes to arranging mortgages in Brampton and other parts of Ontario.
Explaining Mortgage Broker Fees
People who meet banks terms for loan approval are not required to pay any fees upfront. It is the banks that pay a mortgage broker in this case but for people with poor credit, things are different. Fees charged depend on a client’s situation but generally, the fees of a private mortgage start at $2000. Legal issues like inheritance, power of sale and divorce would make the mortgage fees increase. Private lenders need this money upfront to pay mortgage set up professionals.
Licensing of Mortgage Brokers in Brampton
To serve as a mortgage broker in Brampton you must hold a license from the FSCO or Financial Services Commission of Ontario. Before handing you the license, an FSCO worker must establish your residency in Ontario and make sure that you work with a licensed brokerage. Before applying for this license, you must have practised as a mortgage agent for two years. The FSCO approved Mortgage Broker Education Program must be passed by all mortgage agents who want to turn into licensed mortgage brokers.