In Oakville, a mortgage broker is a link between mortgage borrower and lender. Their main aim is to get their clients suitable loans. Mortgage brokers work with both banking institution and private lenders to connect people with the most appropriate loans. Banks are very strict about who they loan, which is the reason for their rejecting any applications with a credit score that is lower than 600 points. Those who don’t qualify for bank loans have to seek optional funding solutions from mortgage brokers in Oakville. Mortgage brokers have the knowledge and capacity to negotiate loans with different kinds of lenders and therefore have the ability to work with clients across the board.
Mortgage Broker Store’s Focus and Services Offered by Mortgage Brokers
A broker will discuss available options with you and with your approval, move on to request multiple quotes. After comparing offers, a mortgage broker will decide on the best lender to loan their clients who may be organisations or individuals. The brokers have a vast knowledge of the Oakville mortgage market which they use to negotiate the best deal on behalf of their clients. As a licensed mortgage brokerage in Oakville, we provide some niche services including:
- Home Equity Loans
- Private Lender Mortgages
- Second Mortgages
- Stopping Power of Sales and Foreclosure
- Debt Consolidation Loans
- Bad Credit Loans
Mortgage Broker Store staff have many years experience connecting clients with alternative financing sources in Oakville. The principal broker at Mortgage Broker Store is Ron Alphonso, a highly regarded real estate expert in Ontario. His knowledge of matters property has taken him many places and Mr. Alphonso is often in the media outlets like Toronto Life, lending his expertise to the public. More of Ron Alphonso’s exploits are available on our media page.
Telling the Difference Between a Mortgage Agent and Mortgage Broker
Mortgage broker and mortgage agents both have licenses to sell mortgages. The main difference between these professionals is that only the broker has the power to open and run a mortgage brokerage. A broker in charge of a mortgage brokerage is called the broker of records. The principal broker has leeway to hire brokers and agents to work at his mortgage brokerage. They are responsible for keeping mortgage agents in line with important market regulations. The broker of record must also ensure that all records are in order.
Comparing Mortgage Brokers with Banks
For many years, banks have held on as the leading mortgage providers in Oakville and the greater Ontario. Today, things seem to take a turn in favor of mortgage brokers who have more options than banks. Owing to tough rules, banks have to turn down people with bad credit, who then must look to mortgage brokers for an easy time finding suitable financing alternatives. Due to their flexibility, mortgage brokers have managed to arrange 40% of all first mortgages on property and 45% of mortgages for new property buyers.
Fees for Mortgage Brokers in Oakville
The fees each client pays will depend on prevailing circumstances. A client who qualifies for a bank loan will not be required to pay any fees beforehand. The broker is sure they will receive payment from the bank as soon as the negotiated loan closes. Those who seek private lender deals must be ready to part with $2000 as mortgage processing fees. Some people may be charged more if they have power of sales, inheritance, or other complex legal issues to deal with. Since taking on people with bad credit is a big risk both mortgage lender and broker try to mitigate by charging the mortgage set up fees to clients.
Licensing Requirements for Mortgage Brokers in Oakville
To serve as a mortgage broker in Oakville, one needs a license from the Financial Services Commission of Ontario (FSCO). Only people who have maintained a mortgage agent license for two years can sit the Mortgage Broker Education Program, which qualifies them for a mortgage broker license. The FSCO will only grant the mortgage broker license to individuals working for a licensed mortgage brokerage and residing in Ontario. The holder of this license may choose to sell mortgages or become the principal broker in their mortgage brokerage.