In London, mortgage brokers act as the link between borrowers and lenders. The main role of a mortgage broker is to find their clients a suitable loan according to their circumstances. Unaided by mortgage brokers, banks are the largest first mortgage lender. Unfortunately, they follow a strict mortgage approval process, which prevents many in London, Ontario from accessing the loans needed for their special situation. People with poor credit score are not able to access traditional loans and must turn to mortgage brokers for help. There is a rush in Canada, of mortgage brokers who choose to work with private lenders in delivering loans to people that were rejected by banks. Our mortgage brokers in London work with private lenders to fill the gap left by banks.
Mortgage Broker Store’s Focus and Services Provided by Mortgage Brokers
Mortgage brokerages in London offer basic services involved in setting up the mortgage. They will discuss your issue, seek multiple quotes, and make a final decision on your behalf. They have great knowledge of the market, which helps a lot in getting their clients the best loan terms and conditions.
We are licensed to serve as a mortgage brokerage in London and besides the usual services, we specialise in some niche areas like:
- Home Equity Loans
- Stopping Power of Sale and Foreclosure
- Bad Credit Mortgages
- Second Mortgages
- Debt Consolidation Loans
- Private Lender Mortgages
Our experienced Mortgage Broker Store staff have been in the market for more than half a decade. During this time, they have arranged alternative financial solutions for many people who had difficulty accessing credible loans. The principal broker Ron Alphonso is a household name in Canada’s real estate market. He is often consulted by several news media to offer insights about events in the sector. Ron Alphonso has been at Toronto Star, Global News, Toronto Life and others as evident in our media page.
Comparing Mortgage Brokers with Mortgage Agents
Mortgage brokers and agents are allowed to sell mortgages but only a mortgage broker may operate a brokerage. The person who operates a mortgage brokerage is known as principal broker and he is free to hire others in the same profession. The broker of records/ principal broker is responsible for documents and ensuring that all regulations are followed in daily operations.
Mortgage Brokers and Banks
Banks in Canada have dominated the market in the past years but mortgage brokers are now gaining increased popularity. They offer more options than banks and specialize in getting loans at competitive rates from a pool of lenders. This makes it possible for mortgage brokers to help people with poor credit, unlike the banking institutions who reject such applications. For now, the banks still command a huge share of the market but mortgage brokers are taking up more space. They are currently responsible for 45% of mortgages for new home buyers and 40% of initial mortgages arranged in the country.
Fees Charged by Mortgage Brokers
A client’s circumstances usually determine the fees a mortgage broker will charge. People who meet banks’ criteria are not asked to pay any fees upfront. The mortgage broker, in this case, knows that they will be paid directly by banks as soon as the mortgage closes. Those who seek private lender mortgages should be ready to part with at least $2000 before the mortgage can be arranged. Divorce, power of sales, inheritance and other issues may cause a mortgage broker’s fees to rise. This money is needed to pay professionals like lawyers and appraisers involved in setting up your mortgage.
What Does it Take to Become a Mortgage Broker in London
Mortgage brokers in London are required to have a license from the Financial Services Commission of Ontario (FSCO). You must also prove residence in the province and work with a licensed brokerage firm. To gain eligibility for a mortgage broker license one must have worked as an agent and maintained their license for two years. Then, individuals have to pass the Master Broker Education Program approved by the Financial Services Commission of Ontario. Those who meet all requirements receive licenses to operate as mortgage brokers in London and other cities that make up the Ontario Province.