Ontario mortgage brokers are spread across the regions and cities of the province. Whether you’re purchasing property in the centre of Toronto, or on the outskirts of Thunder Bay, an experienced mortgage broker can help you find a mortgage loan that will suit your budget and your needs.
Mortgage brokers understand that mortgages are complex and widely varied, and a traditional prime mortgage from a bank might not be the best loan for your situation. If you’re a first-time homebuyer, self-employed, have poor credit, or need a short-term loan to cover a temporary expense, you may find more success with a private or alternative lender.
The experienced mortgage brokers at Mortgage Broker Store have connections to brokers and lenders across the province. Read further to start your search for private mortgage lenders near you.
What is a Mortgage Broker and What Do They Do?
A mortgage broker is a licensed professional who is an expert on mortgages and has connections with a variety of mortgage lenders and investors. A mortgage broker must undergo professional training as a mortgage agent before applying to become a licensed broker. Mortgage brokers do not lend mortgages themselves, but instead act as a “middleman” between a borrower and a mortgage lender.
Because mortgage brokers have connections to a lot of different lenders, they are often better equipped than lenders themselves to help you figure out what type of mortgage or home equity loan will best suit your situation. Unlike mortgage advisors, who tend to work in-house for banks and other lenders and benefit from getting you to apply for a mortgage at their employer, a mortgage broker’s main goal is to find you a mortgage that you can afford, and that will help you realize your financial and home ownership goals.
Why Use a Mortgage Broker?
There are many different types of mortgages available to Canadian homebuyers, and any given type of mortgage can vary in terms of duration, interest rate, and overall structure depending on your individual needs. If you’re applying for a mortgage for the first time, or even if you’ve previously had a mortgage, it can be helpful to approach a mortgage broker first to help narrow down your options.
A mortgage broker can help you by looking closely at your financial situation and the nature of the property you want to borrow against. A reputable, experienced broker can let you know what sort of interest rate you can expect to qualify for, and whether or not you can expect to be approved for a mortgage by a bank.
Mortgage brokers can connect you with mortgage agents who have experience with your type of property or financial situation — for example, a mortgage broker for bad credit near you can point you in the direction of bad credit lenders and loans to help you get approved for a loan that can in turn help you improve your credit score and get back in good financial standing.
Working with an experienced, reputable mortgage broker from Mortgage Broker Store takes the guesswork out of mortgage applications. A mortgage specialist can assist you with every step of the mortgage process, from compiling records and legal documents, to getting your property appraised, to negotiating with lenders to get the lowest interest rate.
Mortgage Broker vs Bank
The key difference between a mortgage broker and a bank is that a mortgage broker isn’t a direct lender and can therefore broker mortgages from a wide range of different lenders and investors. A bank, on the other hand, can only offer its own in-house mortgage products.
A bank is a federally-regulated financial institution, and as such, it is required to follow regulations about who can qualify for a mortgage. To qualify for a mortgage from a bank, you’ll need a good credit rating (usually at least 600), a stable, provable income, a strong history of using banking services responsibly and paying back debts on time, and a property that fits bank regulations for what can be borrowed against.
Bank mortgages can be advantageous as they often carry much lower interest rates than mortgages from private lenders. However, the process of applying and getting approved for a bank mortgage tends to be more time consuming than the same process via a private lender, and banks can’t offer the same level of flexibility in terms of mortgage duration, structure, and sum.
A mortgage broker is someone who is licensed to broker mortgages between lenders and borrowers. Brokers may work independently, though they often work out of private brokerages, allowing them to connect with a wider variety of lenders, including credit unions, trust companies, private money lenders, mortgage syndicates, and mortgage investment corporations (MICs). Because a broker doesn’t have to worry about selling you on an in-house product, they can put more work into negotiating better rates for you, and finding the lowest possible interest rate for your credit rating and financial situation. Since they have knowledge of and connections to a wide range of lenders, going to a broker can save you a lot of time and effort when it comes to comparing similar lenders, and can make it much easier to find private lenders near you.
If you’re having trouble getting approved for a bank mortgage due to poor credit, a history of bad debts, or a short credit history, a mortgage broker can connect you with a lender that works with borrowers in your situation and can offer you a loan without the same bank restrictions.
Now that you know the benefits of approaching a mortgage broker, the question is where to get a mortgage. Wherever you are in Ontario, Mortgage Broker Store can help you find an experienced mortgage broker near you.