Mortgage brokers in Ottawa are an important link between borrowers and lenders of mortgages. The main aim of a mortgage broker is to connect customers with lenders of loan products for their unique circumstances. Evidence shows that banks, unaided by mortgage brokers have been the largest lenders of first mortgages. No everyone qualifies for bank mortgages and this is the reason why people turn to mortgage brokers for alternatives. In Canada, many brokers choose to work with private lenders who are not associated with the banking industry. Our mortgage brokers in Ottawa focus on serving people who are not eligible for traditional bank loans.
Services we Provide and the Focus of Our Mortgage Brokerage
Traditionally, mortgage brokerages in Ottawa provide basic services involved in the mortgage set up process. They are available to talk about your choices and request multiple quotes before making a final decision. Mortgage brokers have a profound knowledge of the real estate industry, which helps in getting the best mortgage terms and conditions for their customers.
We are licensed to operate as a mortgage brokerage in Ottawa. Besides the usual services our mortgage brokerage, “Mortgage Broker Store”, is involved in some speciality services like:
- Stopping Power of Sale and Foreclosure
- Home Equity Loans
- Bad Credit Mortgages
- Private Lender Mortgages
- Second Mortgages
- Debt Consolidation Loans
Our experts at Mortgage Broker Store have many years of experience in providing financial options to people of Ottawa and the larger Ontario Province in Canada. The principal broker is Ron Alphonso, an authority in the country’s real estate sector. The main news outlets in Canada often reach out to Mr. Alphonso for valid information about the industry. He has often been featured in The Toronto Star, Global News, and Toronto Life among others as seen on our media page.
Mortgage Brokers vs. Mortgage Agents
Both mortgage brokers and mortgage agents in Ottawa are licensed to sell mortgages but only a broker is allowed to operate a mortgage brokerage. Principal broker/broker of records is the individual who runs the mortgage brokerage and they are allowed to hire other mortgage brokers and agents to work with the brokerage. As the principal broker, they must ensure that documents are in order and that the brokerage adheres to regulations.
Comparing Mortgage Brokers with Banks
For many years in Canada, banks have been the main mortgage lenders but recent times have seen an upsurge of mortgage brokers. Consumers seem to be attracted by the vast options they can get from these professionals. Mortgage brokers specialise in negotiating competitive rates on client’s behalf from their special pool of non-bank lenders. They can offer more options and unlike banks, they are able to work with clients whose credit scores aren’t so appealing. Banks may still be the biggest lenders in Ottawa but that doesn’t stop mortgage brokers from carving out a niche in the market. Today, mortgage brokers are responsible for setting up 45% of loans for people buying a home and 40% of first mortgages.
Mortgage Broker Fees
Fees depend on the client’s current situation and it is worth noting that those who meet bank’s conditions do not pay any upfront fees to the brokers. This is because they will be paid by the banks as soon as the mortgage closes. People with good credit are least risky mortgage clients but the rest have to pay some fees for setting up the mortgage. A loan from a private lender will cost you $2000 and if there are legal issues, the fees keep increasing. These lenders want to reduce costs as much as possible, which is why they leave clients to pay the lawyers, property appraisers, broker’s staff and other professionals involved in the mortgage process.
What it Takes to Become a Mortgage Broker in Ottawa
It starts with getting a mortgage agent license and maintaining it for two years. If after that an agent wants to upgrade to a mortgage broker, they need to take a special exam approved by the Financial Services Commission of Ontario (FSCO). If they pass the Mortgage Broker Education Program, FSCO must establish that they reside in Ontario and work at a licensed brokerage to issue an individual the license allowing them to practice as a mortgage broker in Ottawa, ON.