Mortgage brokers in Sarnia are individuals who negotiate between mortgage lenders and consumers. Their main goal is to help clients get the attention of banks and other lenders who may be willing to offer them loans at good rates. Banks are the main providers of first mortgages in Sarnia but sadly, many people don’t qualify. The mortgage broker industry in Sarnia grew in response to the needs of people who couldn’t turn to banks. Many mortgage brokers in Sarnia particularly connect their clients with non-bank lenders. Our mortgage brokers in the city solely offer private mortgages to people who couldn’t get bank loans.
Mortgage Broker Roles and the Focus of Mortgage Broker Store
Generally, mortgage brokers offer services to assist in setting up the mortgage. They will listen to the client’s needs, discuss available options, request multiple quotes and compare them before deciding on the best offer for a specific client. Mortgage brokers are very knowledgeable, which comes in handy when looking for the best mortgage rates and terms for clients with bad credit.
Our brokerage, Mortgage Broker Store has the license to trade in mortgages. Besides the normal services, we also have some niche offerings like:
- Home Equity Loans
- Stopping Foreclosures
- Stopping Power of Sales
- Private Lender Mortgages
- Bad Credit Loans
Our professionals at the Mortgage Broker store have been offering alternative financing options for many years. The principal broker, Ron Alphonso is a famous name in the Canadian real estate scene. He is so knowledgeable that you will often catch Ron at Toronto Life or Global news, where he offers his opinion on property matters. Our media page will show you more of Ron’s exploits in the media.
Mortgage Brokers and Mortgage Agents
Both professionals can sell mortgages but only the mortgage broker has authority to run a mortgage brokerage. There can be other brokers employed at such a firm but the lead broker is known as principal or broker of record. Their duty is to ensure that mortgage agents follow all rules and that all documents pertaining to activity in the brokerage are in order.
Mortgage Brokers and Banks
All through Canadian history, banks have been the main providers of mortgages. Mortgage brokers are becoming more common in the market, and they have more to offer the customer than banks do. They typically work with private lenders who can offer the best rates to their clients, the bulk of who have low credit score. Banks cannot loan people with bad credit and while they still offer the most mortgages, brokers could easily overtake. Currently, mortgage brokers are responsible for arranging 45% of mortgages for people buying new properties and 40% of all initial mortgages.
Fees Charged by Mortgage Brokers
Mortgage broker fees vary depending on the needs of each client. The one who meets banks requirement will not ordinarily be asked to pay anything upfront. Banks and mortgage brokers have an agreement where fees are paid directly to the latter as soon as the mortgage is processed. For people seeking private deals, fees may be charged by the mortgage broker, lender or both, if the situation demands it. Typically, the minimum fees are $2000 but divorce, inheritance, power of sale or other legal issues will lead to increased charges for a private lender mortgage. Brokers need the money upfront to pay their staff, real estate lawyers, appraisal and other professionals involved in arranging the loan. A good mortgage broker is able to negotiate affordable fees for clients with lenders in their network.
Mortgage Broker Licensing in Sarnia
Every broker must have a license from the Financial Services Commission of Ontario (FSCO) in order for them to carry out legitimate business as mortgage brokers in Sarnia. The commission must first establish that you live in Ontario before you can get the license. To be able to apply, you must have been a mortgage agent in Ontario for at least two years and maintained your license at a reputable mortgage brokerage. If you meet these criteria, you can take the Mortgage Broker Education Program so you can finally get the license. To give a license, the FSCO requires that the individual works for a licensed mortgage brokerage in Ontario, Canada.