A mortgage broker is a professional in Thunder Bay who mediates between lenders and mortgage consumers. The main goal of a mortgage broker is to bridge the gap by connecting their clients with banks or other lenders who may be offering ideal solutions for a particular client’s need. In Thunder Bay, ON, many of the first mortgages are offered by banks without any association with mortgage brokers. Development of the mortgage industry in Thunder Bay was triggered by a need by many people who had been turned away by the banks. Most Canadian mortgage agents and brokers solely serve people who were rejected by banks. Our mortgage brokers in Thunder Bay focus exclusively on private lending services fro people who could not approach banks for loans.
Mortgage Broker Services and Focus of Our Mortgage Brokerage
The average mortgage broker in Thunder Bay offers services involved in setting up a mortgage. Generally, they consult with a client to understand their needs, request quotes, and reach a final decision. Mortgage brokers are able to negotiate the best terms and rates owing to a profound knowledge of the industry. Mortgage Broker Store, our mortgage brokerage is licensed to trade in mortgages and we have a few niche offerings, which comprise:
- Second Mortgages
- Private Lender Mortgages
- Bad Credit Mortgages
- Home Equity Mortgages
- Stopping Power of Sales
- Stopping Foreclosures
Our staff at Mortgage Broker Store has many years of experience in the provision of alternative lending solutions. The principal broker is Ron Alphonso, a real estate expert, widely sought out for his knowledge of the Thunder Bay mortgage industry he recently featured in Toronto Life, Toronto Star and others as seen on our Media Page. Our brokerage services other cities and towns in Ontario including Oakville, Richmond Hill, Milton, London, Pickering, Windsor, Brampton, Vaughan, and Mississauga among many more cities.
Mortgage Agents in Contrast with Mortgage Agents
Many think they are one and the same because both are licensed to sell mortgages but that isn’t so. A mortgage agent may sell mortgages in Ontario but they cannot run a brokerage as that is the preserve of licensed mortgage brokers. One brokerage may have many brokers but the one in charge of affairs is the broker of record or principal broker. He must ensure that rules are followed and that all documents are in order.
Mortgage Brokers and Banks Compared
As history has it, banks are the leading mortgage lenders in Thunder Bay but there is growing attraction to mortgage brokers. These professionals offer more funding options than banks and most choose to work with private lenders. This way, it is possible to negotiate competitive loans for their clients, on the best terms. Since they deal with people who were rejected by banks mortgage brokers are becoming more and more popular even though banks are still the leading mortgage lender in the city. Today, mortgage lenders have organised 45% of mortgages for people buying a new home and 40% of initial loans.
Fees for Mortgage Lenders in Thunder Bay
How much a client pays in fees depends on their situation. Those who’ve met the banks’ criteria are not required to pay any upfront fees to the broker. Banks pay the mortgage broker as soon as the mortgage closes so it is less risky lending to such clients. People in need of private lender mortgages have to pay a minimum of $2000 to process the loan and charges increase with any unresolved legal matters like divorce, a power of sale or inheritance. The upfront fees may be charged by the mortgage broker, lender or both to pay staff, appraisal and real estate lawyers among other professionals involved in setting up the loan.
Licensing for Mortgage Brokers in Thunder Bay
The Financial Services Commission of Ontario (FSCO) licenses all mortgage brokers in Thunder Bay. The broker must have an address in the province and work for a licensed brokerage there. To get the license you start as a mortgage agent and maintain the license for two years. Then you must pass the FSCO approved Mortgage Broker Education Program in order to get your license as a mortgage broker in Thunder Bay, Ontario.