The professional who negotiates on behalf of mortgage lenders and consumers is known as a mortgage broker. The main intention of a mortgage broker is to connect clients with lenders of various types of mortgages. In Richmond Hill, banks are still the biggest lender of first mortgages without the involvement of mortgage brokers. Banks cannot loan people with bad credit scores, meaning they can only turn to brokers for the best alternative mortgage solutions. Many mortgage brokers in Richmond Hill choose to work with people whose loan applications were rejected by banks. Mortgage Broker Store fully concentrates on mortgages for people in difficult financial situations.
Services of a Mortgage Broker and the Focus of Our Mortgage Brokerage
All mortgage brokers generally offer services related to setting up the loan. An expert will have a discussion with you to make you aware of available options for your situation. With your approval, mortgage brokers go in search for quotes and choose the best offer on the borrowers’ behalf. These professional have unmatched knowledge of the Richmond Hill Mortgage market which they rely on to get clients the best possible terms on loans.
Mortgage Broker Store is licensed to sell mortgages in Richmond Hill and we also specialise in:
- Private Lender Mortgages
- Second Mortgages
- Stopping Power of Sales and Foreclosures
- Debt Consolidation Loans
- Bad Credit Mortgages
- Home Equity Loans
The experts at Mortgage Broker Store have been providing their services in Richmond Hill for more than 5 years. They are led by principal broker Ron Alphonso who also features in the news media to lend his opinion on the current affairs and future predictions for the future of real estate in Richmond Hill Ontario. Ron has been at Global News, Toronto Life and others as in our Media page.
Are Mortgage Brokers and Mortgage Agents the Same?
Many people think this way because both professionals sell mortgages but there are clear differences between them. For example, only a mortgage broker can start a mortgage brokerage firm. The head of a mortgage brokerage is the principal broker or broker of record. He can hire agents and other brokers to work with him on connecting clients with the most appropriate loans. It is the broker of record’s duty to keep agents in check and make sure all business records are accurate and properly filed.
Banks versus Mortgage Brokers
Throughout Canada’s history, banks have been the primary lenders of mortgages. Things seem to be changing with a rise in popularity among mortgage brokers. They are attractive to clients in search of financing alternatives after being rejected by banks. Currently, mortgage brokers in Richmond Hill are credited with nearly half of initial mortgages and 45% of loans for new property buyers. Banks still hold on to a large number of mortgages but if things continue as they are, mortgage brokers will soon be at par. Mortgage brokers, unlike banks, can find a custom mortgage solution for individual clients, which is impossible with the banking sector.
Rates for a Mortgage Broker in Richmond Hill
Rates depend on the clients’ circumstances even though people who get bank loans do not pay upfront. Lenders are confident doing this, as they know the banks will pay their fees directly when the loan closes. Those who seek private lender deals must pay $2000 and the rates might go up if there are pending legal issues. The money is generally for paying professionals like broker’s staff, real estate lawyers, appraisers, and others who are critical to the mortgage set up process. These fees may be charged by the mortgage broker, lender, or both parties; depending on the client’s situation. Typically the higher the risk, the higher the charges by mortgage brokers in Richmond Hill.
Mortgage Broker Licensing in Richmond Hill
One must start out as a mortgage agent in the city and maintain their license for at least two years. If then they are interested, professionals must pass the Mortgage Brokers Education Program and prove to the Financial Services Commission of Ontario that they are residents of the province. To get the license, one must work with an authorised mortgage brokerage in the city. With the license, an individual can sell mortgages and if possible even open a mortgage brokerage.