Mortgage Broker in Canada

Mortgage brokers are Licensed Financial Professionals that conduct research on mortgage programmes or products available on the market and guide and advise borrowers in their search for the best mortgage that suits their individual needs.

In British Columbia Canada, the Ministry of Finance Corporate Relations regulates the mortgage broker industry and licenses all British Columbia mortgage brokers. A mortgage broker is very much like the Real Estate Agent or Broker. They have to attend financing courses and have to pass exams imposed by their provincial jurisdiction. Mortgage brokers act as an intermediary between lenders and borrowers, bringing them together and in the process finding the best possible mortgage for the borrowers.

There are many advantages to deal with a mortgage broker:

Mortgage brokers can negotiate rates on your behalf with a large number of lenders concurrently. Sometimes they play one lender against another lender to your benefit. Lenders include Banks, Credit Union, Trust Company, Private Mortgage Company, Individual lenders.

You only need to fill one application form. The mortgage broker will use this standard application to approach as many lenders as are necessary to get your mortgage approved. If you have to do it on your own, you will have to visit many lenders across the city and fill many application forms.

You do not pay any fee to the mortgage broker. They works for you for free and get paid by the lenders. Only in rare cases you may have to pay a fee and the mortgage broker must advise you upfront.

In Canada lenders pay the mortgage broker a fee irrespective of what interest rates are offered; so the mortgage broker has no incentive to offer you a bad rate. They are better off offering the lowest possible mortgage rate and close a deal. Only when a deal is closed that a fee is paid by the lending institution.

The mortgage broker will check your credit rating only once. If you deal directly with many lenders, each lender will check your credit status separately, and this multiple credit checks may adversely affect your credit score.

Mortgage Brokers have to abide by the guidelines and ethical directions of the Canadian Mortgage Broker Associations such as:

Mortgage Brokers Association of British Columbia (MBABC)

Canadian Institute of Mortgage Brokers and Lenders (CIMBL)

So the next time you are looking for a mortgage by all means feel free and comfortable to consult a mortgage broker. You may be surprised how helpful they are! There are many instances where a mortgage broker will find a lender where the borrower has been turned down by the bank.