A mortgage broker in St. Thomas is an individual who links mortgage consumers with lenders. Their main goal is to make sure that lenders know of the need for credit among consumers. In St. Thomas, most first loans on a property are given by banks; without involving mortgage brokers. Banks follow strict rules when considering mortgage applications and they will not lend to anyone without credit score of 600 points or more. The mortgage industry in these parts grew in answer to the needs of people who were turned away by banks when they needed loans. Our mortgage brokers in St. Thomas only offer private lender services to customers who cannot go to banks for loans.
Services of a Mortgage Broker and the Focus of Our Mortgage Brokerage
Most mortgage brokers provide basic services related to setting up the mortgage. They listen to a client’s needs, discuss available options and request multiple quotes from lenders in their network. The mortgage broker proceeds to compare different offers and choose the one they feel is best for that customer. This is possible because of their vast knowledge of the mortgage industry, which they rely on to get the best terms, and loans.
Mortgage Broker Store has a license to offer mortgages in St.Thomas and in addition to the basics, we offer several niche services including:
- Private Lender Mortgages
- Stopping Foreclosures
- Stopping Power of Sales
- Home Equity Loans
- Second Mortgages
- Bad Credit Mortgages
The experts at Mortgage Broker Store boast several years of experience offering alternative financing solutions. They are under Ron Alphonso, the principal broker and renowned real estate guru in Canada. Ron has been on major media outlets like Toronto Life and Global News, lending his expertise about the mortgage industry. Details of his media exploits can be seen on Mortgage Broker Store media page.
Our mortgage brokerage serves other towns and cities in Ontario including Richmond Hill, Mississauga, Cambridge, Belleville, Ottawa, London and Vaughan to name a few.
Comparisons between Mortgage Brokers and Mortgage Agents
Both professionals are licensed to sell mortgages but there is a notable difference. In addition to selling mortgages, a broker is also permitted to open and operate a mortgage brokerage. They can employ more agents and brokers but as the leader, the person in charge of the firm is known as a broker of record. He/she must ensure that all rules are followed and that all documents are in order.
Comparisons Between Mortgage Brokers and Banks
Historically in Canada, banks have been the main mortgage providers. Today, though, there is an upsurge of mortgage brokers in St.Thomas and they have more to offer than banks. Most of the brokers offering mortgages work with non-bank lenders. They are able to negotiate the best terms with their private pool of lenders. While banks still hold on to the lead, the use of mortgage brokers is undoubtedly on the rise. In Canada today, mortgage brokers have arranged about 45% of loans for new property buyers and 40% of initial mortgages.
Fees Charged by Mortgage Brokers in St.Thomas
A mortgage broker, lender or both parties may demand fees according to the client’s present situation. People who qualify for a bank loan through brokers are not required to pay fees upfront as they will be paid directly by banks. Those who need private deals have to part with at least $2000 or more if there are legal issues like divorce, power of sales or inheritance to resolve. The money is needed to pay different professionals along the mortgage set up like real estate lawyers and appraisal.
Mortgage Broker Licensing Process in St.Thomas
All mortgage brokers in St.Thomas should have a license from the FSCO or Financial Services Commission of Ontario. If you ever want to be a broker, it is a must that you first be a mortgage agent and maintain the license for two years. Then, you can apply for the license and sit the Mortgage Broker Education Program. As the licensing body, FSCO must ascertain that you live in Ontario and work for a licensed mortgage brokerage. Only then will you get the license to serve as a mortgage broker in St. Thomas, Ontario.