Mortgage brokers in Markham are intermediaries between mortgage lenders and consumers. A mortgage broker’s main intention is to link banks and other lenders with the clients who need them most. Banks are the biggest first mortgage lenders in Markham without any association with mortgage brokers. Development of the mortgage broker industry in the city was triggered by an urgent need for loans by people who couldn’t get bank approvals. Banks are very strict with the mortgage approval process, throwing out any applications from people with less than 600 credit score. In spite of poor credit, some people have assets that they can leverage to acquire loans to fulfil their financial obligations. Many mortgage agents and brokers in the country specialise in connecting consumers with private lenders who consider other factors besides credit score when making lending decisions. Our mortgage brokers in Markham exclusively concentrate on private lending services geared at people who cannot get bank loans.
A standard mortgage broker in Markham ordinarily offer services related to setting up the loan. The mortgage broker consults with clients on available options and request as many mortgage quotes before deciding on a particular one. They have in-depth knowledge of the entire industry that makes it possible for them to get clients the best mortgage terms and conditions.
Mortgage Broker Store, our mortgage brokerage is licensed to offer mortgages in Markham and we have a few special services for our clients including:
Mortgage Broker Store has more than 7 years of experience in providing alternative funding solutions. Principal broker Ron Alphonso is at the helm and a renowned expert in the industry having featured severally in popular media outlets such as Global News, Toronto Star, and Toronto Life among others as in our Media page.
Though both are licensed to sell mortgages in Markham, only a mortgage broker may set up a practice. A mortgage brokerage has many brokers but the individual in charge of affairs is the broker of record or principal broker. The principal broker ensures that agents comply with regulations and that all the brokerage’s documents are in order. He is culpable for everything that happens at the mortgage brokerage.
Through history, banks have been the main mortgage providers in Canada. Mortgage brokers are now the norm as they are able to offer a wider range of funding options compared with banks. Many mortgage lenders in Markham can negotiate competitive rates with their network of lenders. Most of mortgage brokers’ clients are individuals who were turned away by banks. The use of mortgage brokers is certainly on the rise as currently, they are responsible for arranging 40% of new mortgages and 45%of mortgages for new home buyers.
The fees charged by mortgage brokers depend on a client’s special needs. Mortgage brokers generally don’t charge upfront fees for people who meet banks’ lending criteria. This is because, for mortgages involving banks, mortgage lenders are paid directly by banks when the mortgage closes. People who fail to meet requirements by banks, the broker and lender may choose to charge fees upfront. Private lenders require at least $2000 to arrange a mortgage. The fees increase if the borrower is held up in divorce, power of sales, inheritance or other complex matters. For a private mortgage, the fees are needed to pay staff, real estate lawyers, as well as the appraisal team. Lenders decide to leave set up costs to borrowers in an attempt to mitigate the risk of loaning to people with poor credit among other issues that could lead to non-payment.
Mortgage brokers must have a license from the Financial Services Commission of Ontario. To get this license you must have an Ontario address and work for a licensed brokerage. Mortgage brokers must make their way from being mortgage agents, maintaining the license for a couple of years. After applying to be a broker, the mortgage agent can only receive the coveted license after passing the Mortgage Broker Education Program approved by the Financial Services Commission of Ontario.