Mortgage brokers are individuals tasked with connecting consumers and mortgage lenders in Peterborough. The main aim is to bridge the gap and connect their customers with private lenders or banks offering the best deal. In Ontario, banks provide the majority of initial mortgages working with mortgage agents. Banks are very strict about who they serve with loans, hence the need for mortgage brokers who offer services to those who were turned down by banks. There are many Canadian mortgage lenders and agents who only connect their clients with private “non-bank” lenders. Our mortgage brokers in Peterborough exclusively offer private lending services to people who cannot go to the banks. Banks usually need a high credit score in order to approve loans but many people do not reach the threshold and are left searching for alternative financing options.
Basic Mortgage Broker Services and Focus of our Mortgage Brokerage
A mortgage broker generally provides services related to arranging the mortgage. They can discuss your options and request as many quotes as possible before deciding on the best deal on your behalf. They have a profound knowledge of the industry, which helps in getting clients the best mortgage terms and rates. As a licensed mortgage brokerage, Mortgage Broker Store offers the basic services including a few special offerings, which include:
- Second Mortgages
- Private Lender Loans
- Stopping Power of Sales
- Bad Credit Mortgages
- Stopping Foreclosure
The staff at the Mortgage Broker store has many years of experience providing optional financing solutions. An expert in the real estate industry, Ron Alphonso, who is constantly in the news, leads the staff at Mortgage Broker Store. He has appeared in Toronto Life and other media outlets as seen in out media page. We serve other cities including Ottawa, Toronto and Brampton to name a few.
Comparing Mortgage Agents with Mortgage Brokers
Mortgage agents and brokers in Peterborough can all sell mortgages but there is a difference. Only the mortgage broker is allowed to run a brokerage. The person who runs a mortgage brokerage is known as the principal broker or broker of record. They have a duty of ensuring that mortgage agents follow rules and that documents are in order.
Comparing Mortgage Brokers and Banks
Banks have been historically the main lenders of mortgages in Peterborough. Mortgage brokers are more common today and they can offer a wider selection of alternative financing than banks. Most mortgage brokers solely offer non-bank mortgages. They can talk to their lender network to give the most competitive rates to their clients. Most of a mortgage lender’s clients are people who were turned down by banks. While banks are still the main source of mortgages, the use of mortgage brokers is incessantly growing in popularity. They set up about 45% of loans for people buying new homes and 40% of initial mortgages.
Fees Charged by Mortgage Brokers in Peterborough
The fees charged by mortgage brokers in the city depend on your current situation. If you are approved by banks, there will be no need to pay fees upfront because any fees incurred by the broker will be paid directly as soon as the mortgage closes. If you seek a private deal, you might have to pay money to the mortgage broker and lender or both, depending on your circumstances. The minimum charges are $2000 for a private lender mortgage but those with legal issues often have to pay more. The mortgage broker fees could increase if there is divorce, inheritance or other legal matter to deal with. The fees charged are needed to pay mortgage broker staff, real estate lawyers and property appraisal. A mortgage broker in Peterborough is the best person to negotiate on your behalf in the market where finding the best deal can be daunting.
Mortgage Broker Licensing for Peterborough
The Financial Services Commission of Ontario licenses mortgage brokers in Peterborough. FSCO requires that you live in Ontario and work for a licensed mortgage brokerage. All brokers start as mortgage agents and they must maintain the license for two years before they can apply to be a mortgage broker. For the license, you need to pass the Mortgage Broker Education Program approved by the Financial Services Commission of Ontario.