Mortgage brokers in Mississauga act as a bridge between mortgage lenders and consumers. The main goal is to help borrower’s get their loan request to lenders of mortgages in the market. Banks are the leading provider of mortgages in the city but sadly, many people do not qualify. Banks are very strict about credit history, which leads to rejection of many applications. To get any loan from an institutional lender in Canada you need 550 points or higher, which is too high for many middle-income earners with outstanding debt. On the brighter side, there are private lenders in Canada without association to banks that are willing to loan people who were rejected by the institutionalised lenders. Our mortgage brokers in Mississauga specialise in serving this category of consumers who face difficulty in finding suitable loans.
Mortgage brokers in Mississauga generally provide basic services involved in arranging the loan. They will discuss your situation, request several quotes, and make a choice they feel is most suitable for each client. The biggest advantage of mortgage brokers is that they have widespread knowledge of the industry, which goes a long way in helping clients get the best terms and rates for mortgages.
Our mortgage brokerage is licensed to serve in the Mississauga market where we have specialised offerings like:
- Stopping Power of Sale and Foreclosure
- Second Mortgages
- Private Lender Mortgages
- Home Equity Loans
- Bad Credit Mortgages
- Debt Consolidation Loans
Our staff has gathered several skills over the years they have been providing alternative financing in Mississauga and other parts of Canada. Principal Broker Ron Alphonso, an expert on the Ontario real estate scene, leads mortgage Broker Store. He is often featured in major media outlets like Toronto Star and Global News. Ron Alphonso is a reputable real estate authority with several years of experience offering alternative financial solutions in Ontario.
Differences Between Mortgage Agents and Mortgage Brokers
Both professionals can sell mortgages but only a mortgage broker is licensed to set up a company. A mortgage brokerage is this company that is usually under the stewardship of a principal broker who is accountable for making sure documents are in order. They are also charged with ensuring that the mortgage act is adhered to by brokers working under him.
Mortgage Brokers Compared with Banks
Banks are the leading mortgage lenders in Mississauga but mortgage brokers are gaining widespread popularity. Borrowers are attracted to the brokers offering them more options than they could get from banks throughout the years. Several mortgage brokers prefer working with private lenders who are not under the same rules controlling banks and institutional lenders. They can negotiate with non-bank lenders to provide loans at competitive rates for their clients with bad credit. Banks may still be the main mortgage lender in Mississauga but mortgage brokers are certainly taking their piece of the market. Currently, brokers have arranged 40% of the initial mortgages and 45% of mortgages for people buying their first loan.
Mortgage Broker Fees
What a client pays the mortgage brokerage depends on their situation. People seeking private lender mortgages must part with $2000 for setting up the mortgage. This will increase if there are unresolved legal issues like divorce, power of sale situations and inheritance matters facing the borrower. Those who meet banks’ requirements are not asked to pay any fees upfront as the mortgage broker will receive their fees from the bank when the mortgage closes. There is a huge risk in lending to people with bad credit and to reduce their expenses, private lenders require clients to pay lawyers, appraisers, and others involved in arranging a mortgage.
Mortgage Broker Licensing
To operate as a mortgage broker in Mississauga you must get a license from the Financial Services Commission of Ontario (FSCO). Before giving the license, the FSCO must establish that you reside in Ontario and are under a licensed mortgage brokerage. A mortgage broker starts out as a mortgage agent who must maintain their license for two years before taking the Master Broker Education Program. Only if they pass can an agent turn into a mortgage broker allowed to serve in Mississauga or other parts of Ontario.