Mortgage Brokers in Barrie
A mortgage broker is a licensed professional who can secure a mortgage for their clients. They act as the middle person between you and one of the various lenders. When they use tier A-lenders such as banks, their services do not cost you anything because the lender pays them once the mortgage has closed. By using a local broker, you can meet in-person to discuss your needs and concerns. Mortgage brokers also give you access to the best mortgage rates offered by banks and lenders across Canada.
Mortgage brokers can further help you whether you’re looking to purchase a home. They can also assist to renew or refinance your mortgage. Mortgage brokers can assess your financial situation and provide solid credit advice. Further, they can make recommendations based on your specific situation. They assist with preparing your mortgage application for the lender and collecting all the required paperwork for the mortgage. Having expert help can simply the entire approval process and give peace of mind. Lastly, the mortgage broker can work closely with both your real estate agent as well as your lawyer to make certain everything runs smoothly.
How Your Broker Can Shop Around With Different Lenders
While a bank mortgage specialist can tell you about the offerings at the specific bank, a Barrie mortgage broker, like Mortgage Broker Store, has more flexibility. They can explain the offering at all lenders. This includes banks, trust companies, credit unions, and private lenders. This allows them to provide the most competitive rate to suit your specific situation.
Now with mortgage rates set to climb while the prices of homes in Ontario are set to do the same, having a competitive mortgage is crucial. You need a low mortgage rate, but also may want a mortgage with features that give you flexibility if circumstances change.
The new federal stress test makes qualifying for a mortgage in expensive markets a challenge, especially for first-time buyers. The new stress test will be more responsive to interest rate changes, including a recent drop in lending terms. The stress test is designed to protect consumers and banks from the risk of defaulting on their mortgages. These new regulations also mean mortgages need to be custom-tailored for each individual or family. Every individual’s situation is different, thus there are various types of mortgages.
How Does a Mortgage Broker Get Paid?
Mortgage Brokers get their commission by the lender that provides the mortgage. There is no down-side to the borrower for using the services for a broker. Typically, a lender will share their upfront fees, which are built into the mortgage with the broker. This allows for a fair and transparent process for the consumer.
You’ll get unbiased advice at no additional cost to yourself. With certain high-risk lenders a broker will charge the borrower, but the broker will explain this upfront. This type of payment structure allows for you to find the right mortgage broker.
How a Mortgage Broker Can Offer a Lower Rate
A mortgage broker can offer a lower rate because they have access to a variety of lenders, products and rates. They can compare mortgages without having your credit checked multiple times. Mortgage brokers are independent third parties, and they can negotiate on your behalf to get the right mortgage that suits your needs. They also provide more flexibility while working around your schedule, as they usually do work extended hours. A mortgage broker also has in-depth industry knowledge. Best of all, their services are typically free as previously mentioned.
What is the Difference Between a Mortgage Agent and Broker
Both an agent and a broker can perform the act of "brokering" a mortgage by acting as a middleman between borrowers and lenders. The key difference is that a broker will typically manage a brokerage and perform tasks associated with running a company, while an agent will exclusively focus on providing mortgages to clients.
In Ontario, there are certain steps one must take to become a mortgage agent. First, they must pass the Financial Services Authority of Ontario or FSRA approved mortgage agent course for licensing. This is referred to as the mortgage agent licensing course. Second, one must get hired by a FSRA licensed mortgage brokerage. The mortgage brokerage applies to the FSRA for your license. Once you have two years as an agent, you can upgrade your mortgage broker license.