How is a Mortgage Broker in Canada Paid?
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Posted On :
Feb-06-2012
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Article Word Count :
516
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Many think that in order to use a mortgage broker to help find the best lender and the best mortgage package for them, they’re going to need to pay high fees for the service. In the United States, that can be true, as brokers are not held to the same standards or legislation as they are in Canada.
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Many think that in order to use a mortgage broker to help find the best lender and the best mortgage package for them, they’re going to need to pay high fees for the service. In the United States, that can be true, as brokers are not held to the same standards or legislation as they are in Canada.
Brokers in the United States can also, for the most part, charge whatever they like for doing the legwork of finding their customer the best mortgage. But most mortgage brokers in Canada don’t charge any fees for their service, giving Canadian customers something that really might seem too good to be true.
While it might seem that way, it’s not. Mortgage brokers in Canada are usually paid a finder’s fee by the lender. Because the customer may never have used that lender if their mortgage broker had never recommended them, the lender realizes that the broker needs to be compensated and so they pay the fee. When there are instances that the broker provides additional services that are not typically covered by a brokerage, they may charge the homebuyer additional fees. These cases are rare but when they do occur, the extra costs are always outlined to the homebuyer before any contracts are signed.
Fees aren’t the only way that mortgage brokers in Canada differ from those in the United States. Another major way is the standards they are held to throughout the industry, and the legislation that is imposed on them. While the United States is beginning to become much more stringent with the restrictions placed on mortgage brokers, they are still somewhat behind those in Canada.
Generally brokers in the United States can charge as much as they want for their services, and other than their licensing requirements, there is no real “industry standard” or association to set excellent mortgage brokers apart.
Mortgage brokers in Canada that are most recognized as real professionals in their field generally belong to the Canadian Association of Accredited Mortgage Professionals (CAAMP.) Homebuyers who are looking to work with a mortgage broker should make sure the broker they work with is a member of this association; as well as have a designation from the Accredited Mortgage Professional (AMP.)
Mortgage brokers in Canada truly do work for the consumer, and their main objective is to find the best mortgage deal for them. Generally a mortgage broker in Canada will help the homebuyer by listening to their situation and finding the lender offering the best mortgage package for the buyer. Once the application has been submitted to the lender, the broker will still walk the buyer through the approval process, and the paperwork that is involved.
Once a mortgage loan has been approved, the homebuyer will start making payments directly ot the lender and the mortgage broker typically steps out of the picture somewhat. However, when it’s time to refinance or when the mortgage is up for renewal, a mortgage broker can still help homeowners get the best deal.
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Article Source :
http://www.articleseen.com/Article_How is a Mortgage Broker in Canada Paid?_144768.aspx
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Author Resource :
Bryan J is the author of this article. For more information about Toronto Mortgage broker and Canadian Mortgage Broker please visit canadianmortgagesinc.ca.
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Keywords :
Toronto Mortgage broker, Canadian Mortgage Broker,
Category :
Finance
:
Mortgage
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