Not all mortgage brokers are alike (edit/delete) Well I just heard on the news that an Ontario woman was charged $11,000. in up front fees from her Mortgage broker. Well it seems they are going to court and I'm guessing someone is going to be refunding some money back. It seems that Mortgage Brokers need to be licensed, but those that work for them do not. I'm not saying that Mortgage Brokers are bad, but they definately are NOT all the same. I mostly deal with major banks Mortgage brokers as opposed to your local brokerage offering everything for free. In dealing with the banks brokerage, I know that certain standards are going to be met and I also know that professionalism is expected and delivered. At the same time I have 2 other Private brokerages that I know can offer that service as well. But which is better? Typically the banks brokerage likes to deal with good credit, although they have definately pulled some deals together that I thought had no chance. I like the consistancy here. The brokerage will offer typical mortgages as well, but they have different mortgage investers and may be willing to take a risk on a client...but never without risk management. You may get the mortgage but at a higher rate...but you got it. This is one reason I always ask if you have been pre-approved for a mortgage. We need to know exactly what to expect as far as what you can afford. Getting a pre-approval is easy and costs nothing, but then you are armed with knowing what you can afford and may be able to offer quiker on the property you want! Paul |
HLC - Mississauga, ON
You are definitely right on that one!! Not all mortgage Brokers are the same...
I've heard of exorbitant fees being charged to clients and know of a broker house that aims to make at least 2.5% in fees from their clients. On tougher deals where a mortgage can't be placed with a conventional lender expect that a broker will charge approximately 1 to 1.5% in fees as they do have to work HARD to get the borrower financing. Also, because the deal is riskier, the lender will not be willing to allocate a finders fee. Hence, the broker needs to be paid for his/her time by the client.
As a mortgage broker I do have to vouch for the good ones though. We look out for our clients best interests by shopping the market for the best possible deal and customize a mortgage plan. Our turnaround time should be withing 24 hours or less and saying we're flexible is putting it mildly. I know I'm connected for at least 12 hours a day 7 days a week with my clients and keeping up with the rates and new products out there.
An unsolicited piece of advice is work with someone reputable and ask them the tough questions such as their credentials and why use them as opposed to someone else. If the broker isn't boasting about his/her experience and offering referrals be weary. Also, trust your gut instinct and make sure you feel comfortable and that you can trust the person sitting in front of you.
Feb 22, 2008 02:34 AM
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