Mortgage brokers in Toronto are intermediaries between lenders and mortgage consumers. A mortgage broker’s main goal is to link clients with lenders offering the best loan product for their needs. Banks are the biggest lenders of first mortgages, but mortgage brokers gained popularity as an alternative for those who were turned down by banks. In Canada, most mortgage agents and brokers connect customers with non-bank or private lenders. Our mortgage brokers concentrate on private lending services for people who cannot qualify for bank loans.
Our Mortgage Brokerage’s Focus and Services Provided by Mortgage Brokers
The ordinary mortgage brokerage in Toronto offers standard mortgage set up related services. They can discuss your options and request different quotes before making a choice. They have deep knowledge of the industry, which is particularly beneficial in getting consumers the best rates and terms for a mortgage.
Our Mortgage Broker Store is a licensed mortgage brokerage to operate in Toronto, ON. We also engage in some niche areas including:
- Private Lender Mortgages
- Bad Credit Mortgages
- Stopping Power of Sale and Foreclosure
- Home Equity Loans
- Second Mortgages
- Debt Consolidation Loans
The professionals at Mortgage Broker Store have over half a decade of experience providing alternative funding solutions. The broker of record, Ron Alphonso is a renowned expert in the mortgage industry who constantly features in the media. Ron is an important professional in the Toronto market but his name resonates with the entire province of Ontario and beyond. He has been on Toronto Life, Toronto Star, and Global News as is evident in our media link.
Comparing Mortgage Brokers with Mortgage Agents
Mortgage brokers and agents in Toronto are both licensed to sell mortgages but only one is allowed to run a brokerage. The person who runs a mortgage brokerage is the principal broker, also known as a broker of record. A principal broker may hire others to work at the mortgage brokerage but it is his job to ensure full compliance with regulations and that all documents are in place. In simple terms, the broker of records is responsible for everything that happens at the brokerage, as he is indeed the heart of that company.
Mortgage Brokers vs. Banks
Banks have historically been the main mortgage providers in Canada but mortgage brokers have recently become very popular. This is probably because they are able to offer more options than banks can. Most specialise in the provision of non-bank mortgages by negotiating competitive rates with their pool of lenders. Most clients of mortgage brokers are people who have been turned away by banks. Banks might be the major source of mortgages but that doesn’t deter the use of mortgage brokers. Mortgage brokerages are today responsible for arranging 45% of mortgages for people buying a home and 40% of initial mortgages.
Fees Charged by Mortgage Brokers
The fees a mortgage broker charges depend on each client’s needs. Those who meet banks’ criteria will not have to pay any upfront fees. This is because the bank pays a lender directly the moment a mortgage close. People who fail the bank assessment have to pay upfront fees to the lender, broker, or both. If you seek a loan with a private lender, you must pay $2000 as fees to set up the mortgage as they need to mitigate the risk of loaning people with bad credit. This figure will increase if there is a legal issue such as inheritance, divorce, and power of sales to resolve. Fees for a private lender mortgage are meant to pay lender and broker’s staff, lawyers and property appraisal experts among other professionals involved in the mortgage process.
Mortgage Broker Licensing Toronto
All mortgage brokers in Toronto must have a license from the (FSCO) Financial Services Commission of Ontario. This allows one to do business as a broker and to get it an individual must have an Ontario address and work at a licensed mortgage brokerage. Mortgage brokers start as mortgage agents and maintain a relevant mortgage agent license for 2 years. Only then, can they apply as a mortgage broker and pass the Master Broker Education Program approved by the FSCO.