A mortgage broker in Guelph is a professional who acts as the middleman between mortgage clients and potential lenders. A mortgage broker’s primary goal is to ensure that organizations and individuals get the loans they need at the best terms from all available lenders. Banks are the main providers of first mortgages today, without the participation of mortgage brokers. There was a niche in the industry, which led to the growth of the mortgage industry. Many people were turned away by banks and in need of alternatives offered by a special set of brokers who work with private lenders who are not associated with banks. Our mortgage brokers in Guelph concentrate solely on private deals targeted at people who can’t borrow from banks.
Services Offered by Mortgage Brokers and Our Mortgage Brokerages Focus
The ordinary mortgage broker in Guelph generally provides services needed to set up the mortgage. The broker can discuss your options and request quotes from different lenders before reaching a decision on one. Mortgage brokers have comprehensive knowledge of the industry, which helps a lot in getting clients the best terms and rates for the mortgages.
Our brokerage, Mortgage Broker Store, has a license to deal with mortgages in Guelph and we have some niche services to offer, including:
- Private Lender mortgages
- Second Mortgages
- Home Equity Loans
- Stopping Foreclosure
- Bad Credit Mortgages
- Stopping Power of Sales
The staff at Mortgage Broker Store has more than 7 years of experience offering alternative funding solutions. They are led by an expert in the real estate industry, Ron Alphonso whose title is ‘principal broker’. Ron has often been featured in popular media outlets like Toronto Star, Global News, Toronto Life and others as seen on our Media Page. We serve several cities neighbouring Guelph like Oakville, Milton, Richmond Hill, Windsor and London to name but a few.
Mortgage Brokers vs. Mortgage Agents
Mortgage agents and brokers in Guelph are people with a license to sell mortgages to different consumers. Both a mortgage broker and mortgage agent can sell mortgages but only the broker can open a brokerage. There can be multiple brokers in one mortgage brokerage but the leader is known as the principal broker or broker of record. It is his duty to make sure rules are followed and that all the mortgage brokerages documents are in order.
Comparing Mortgage Brokers with Banks
In Canada, the norm over the years has been that banks lead at providing mortgages. However, there are more mortgage brokers in the industry offering more options than banks. Most mortgage brokers specialise in non-bank mortgages as then they can be able to negotiate competitive rates for each client. People who couldn’t get bank loans make the bulk of mortgage broker clients which explains the surge in demand for mortgage brokers in Guelph, Ontario. As of today, they are responsible for about 40% of new mortgages and 45% of loans for people buying a new property. Banks are still at the helm but if things continue as they are, mortgage brokers will soon take over.
Mortgage Broker Fees
Mortgage broker fees depend on a particular client’s needs but people who meet banks’ criteria do not have to pay any upfront fees. The lender is, in this case, paid directly by the bank as soon as the mortgage closes. The rest who do not qualify for bank loans might be charged upfront by the broker, lender, or both. Private deals demand a minimum of $2000 to set up the mortgage. The charges will increase if a borrower is caught up in a complicated legal situation. Power of sales, inheritance, and divorce are some things that cause private lender fees to increase.
Mortgage Broker Licensing for Guelph
The Financial Services Commission of Ontario (FSCO) must license mortgage brokers for them to carry out legitimate business in Guelph. The licensing body also requires that an individual has an Ontario address and work at a licensed brokerage. Brokers start out as mortgage agents and maintain the license for two years before applying for the broker’s license. The license is only released after an agent passes the Mortgage Broker Education Program, approved by the Financial Services Commission of Ontario.