What Does a Mortgage Broker Do?

What does a mortgage broker do? When applying for a mortgage, an Ottawa mortgage broker acts as the middle person between the lender and you. They review your goals and needs and compare different mortgage products from multiple lenders on your behalf. They assist with the application process all the way to the closing date. Plus they are there to assist after closing as well. There are a lot of differences between a great Ottawa mortgage broker and a less than favourable one. This article will help answer the questions, what does a mortgage broker do?

They Review Your Financial Situation and Compare Lenders and Rates

Sometimes at the bank it may feel like you are just another customer. With a broker however they typically like to form more of a relationship with the client. They like to review your goals and needs more in depth. Also, they will ask you a series of questions to be sure they find you the best solution for your needs.

The best mortgage broker might not necessarily be the one who immediately offers you a rate without getting to know you, your situation or goals.

Ottawa Mortgage agents can look to approve you for a mortgage in situations where you may have been declined by your bank. The decline may have been from a situation where you were not able to meet the lender’s guidelines.

Learn more: Ottawa Mortgage Brokers

Learn more: Six Less-Obvious Reasons Why You May Be Declined For a Mortgage

A mortgage broker can really shine in this situation. They have access to alternative and private lenders which are not available typically through your bank.

Learn more: Private Mortgage Ottawa

With your one application they are able to compare mortgages from a variety of different types of lenders and help discover the best mortgage for your needs.

A bank will only have access to their own mortgage so unfortunately you will only be able to explore one option with them.
If you do not shop around with a broker while looking for a mortgage, it is probably safe to say that you are missing out on other options and deals.

They Make the Application Process Easy

What does a mortgage broker do? Even if you have gotten a mortgage in the past, applying for a new mortgage can sometimes feel a little overwhelming and can be quite time-consuming.

Banks at times can lack in communication, have quite limited hours compared to a mortgages brokers in Ottawa and can make the documents process exhausting.

Ottawa mortgage brokers takes care of the entire process from the initial application to gathering your documents. Also, with negotiating rates at different banks and lenders, educating and guiding you through the process and being your one stop shop from start to finish.

Exploring options with the mortgage broker is completely free.

Why Use an Ottawa Mortgage Broker?

Mortgage agents are true experts and professionals in the industry and solely work on mortgages. They have a great knowledge of the mortgage process and with that can make the process stress-free and easy for you.
What does a mortgage broker do? A mortgage broker in Ottawa can also caution you on the different negative fine print that can come with different lenders. For example, with a collateral mortgage.

Learn more: Collateral Mortgages

Also mortgage brokers can look to get you approved when you were otherwise declined by a bank. This may arise in situations such as with bad credit or self employment.

Learn more: Bad Credit Mortgages

Learn more: Self Employed Mortgages

What does a mortgage broker do? Mortgage agents work directly with the bank’s underwriting centres and managers and have a great relationship with the decision makers. They know who to call to get your application looked at quickly and to assure you get the best rates.

As a mortgage broker only gets paid if they are able to assist you with a mortgage, their only goal is to be sure that you are happy throughout the process. With that, it is within their best interest to get you the right mortgage for your needs.

A mortgage broker can also assist with a mortgage renewal and mortgage refinance. With that, they want to be sure that you always have a good experience now and in the future.

Learn more: Mortgage Renewal

Learn more: Mortgage Refinance

How Does a Mortgage Broker Get Paid?

When buying a home, your real estate agent is typically free to you and paid by the seller.  Similar to this, your mortgage broker is free to you and paid by the lender.

A mortgage broker in Ottawa is paid a commission from the bank or lender.

Although they are paid by the bank, they are not a bank employee which means less overhead to the bank. Less cost to the bank means lowers rates for you.

A mortgage broker is only paid if you complete a mortgage with them. Therefore your needs are priority one. Unlike a salaried employee who is paid whether you are happy or not, or work with them or not. A mortgage broker wants to make sure you always have a favourable experience.

In general, a mortgage broker typically does not charge fees for assisting with traditional mortgages.

A fee generally will arise with non-traditional lending such as agricultural, commercial or private lending.

Learn more: Private Lender Mortgage Cheat-Sheet

Is There a Better Way to Apply For a Mortgage?

As the world moves more towards online banking, booking vacations online and ordering everything online. Working with a broker can fall into this more modern way of doing things.

Just like you can book your annual family trip online for free in minutes and save money with a company like Expedia. You can reach out to a broker and get the best mortgage rates for your needs quickly and for free. No need to visit the bank branch. No need to take time out of your evenings and weekends and no need for paper-based documents.

Can They Shop Around Every Lender in Canada?

What does a mortgage broker do? Whether you are buying your first home or are a seasoned homeowner, the process of shopping around can take quite a bit of time.

Each time you apply for a mortgage, a credit check is done and this uses up credit points. Having too many credit checks can reduce your score. Fortunately, a broker can do one credit check and with that can review your application at dozens of lenders.  

A broker has access to many banks, credit unions, monoline lenders, trust companies and more.  

Learn more: Monoline Lenders

There are a few banks however that do not deal with mortgage brokers.

You may find however that the banks that do not offer to their mortgages through a discounted channel generally have higher rates.  Just like a company that only sells their products through their stores and not through online companies like Amazon.  

As a mortgage broker can look to multiple lenders, they can present you with different lenders. Therefore offering you more options to meet your goals. 

The more volume a broker or their brokerage does, typically the better access to larger rate discounts and faster turnaround times at lenders, they will have.   

This means you can save more and get a response faster.

Are There Any Downsides To Using a Mortgage Broker?

One of the biggest advantages to using a mortgage broker is their expertise. Plus, their access to great rates at many lenders.

Each broker however will have their own amount of skills and experience. This experience in packaging and presenting your application to a lender can therefore vary from broker to broker. This can make the difference between an approval and a decline.

When talking to a potential mortgage broker it’s important to ask them how long they have been in the industry and the experience they have. If they just started there is a long road of learning ahead to know each lender’s policies and procedures amongst the dozens of lenders.  

If choosing between an inexperienced mortgage broker and your bank branch, you may be better off with the bank if the representative there has more experience with mortgages.  

It is quite rare, however some mortgage brokers may charge a fee if you leave them for another lender prior to closing or to assist you with a mortgage.

Some mortgage brokers may also not have access to as many lenders or discounts if they or their brokerage does smaller volumes.  In this situation your bank branch may have similar rates.  

The bottom line is an experienced mortgage broker should have access to the very best rates options and guidance for you.

How Do I Find The Best Mortgage Broker in Ottawa?

Speak to colleagues, friends and family to see if they have used a mortgage broker before and can recommend one.

Look online to see which mortgage brokers are well reviewed. Also which ones are accredited with the Better Business Bureau.

Learn more: Better Business Bureau

How does a mortgage broker work?

Buying a home can be very exciting but also a little overwhelming. It can be overwhelming as it may be the largest and most expensive purchase you will make. When it comes to getting a mortgage there are so many options. It’s important to do your research to find the best deal out there. If you are unsure if you are getting the best lender, options and rates, a mortgage broker can help.

How Does a Mortgage Broker Get Paid?

A mortgage brokers role may be new to some. With that, some questions may be on your mind like, ‘how does a mortgage broker get paid?’ and ‘what does a mortgage broker do?’. Here is some information to help answer these questions.

How Do I Get the Best Mortgage Rates in Ottawa?

Knowing if you are getting the best mortgage rate is hard. The challenge is that there are so many banks, lenders and websites to compare. Here is some information to help you get the best interest rates for mortgages in Ottawa.

What is a fixed rate mortgage?

A fixed rate is there to protect you against future increases in interest rates. By locking in the rate, if interest rate‘s go up, you are protected. However, if interest rates go down during the term you will have to wait till the end of the term until you can take advantage of the lowers rates. The reason for this is typically a lender will charge a penalty to break the mortgage during the term. Learn more: The most common reasons people break a mortgage

How much down payment do I need to buy a house?

How much down payment do I need to buy a house? About 10 years ago you could buy a property with no down payment. With this, you could get a mortgage that was 100% of the value of property. Mortgage guidelines however have since become more rigid and most banks and lenders have reduced the loan to value that they are able to lend. How much down payment do I need to buy a house? The answer to this depends on a few things.

How much mortgage can I afford?

When looking to buy a home and get a mortgage, an important first step is to answer the important question of, how much mortgage can I afford? Some people want to purchase as much of a home as their pre approval limit will allow without going over their comfort level or having stress with cash flow.

What is a mortgage pre approval?

During a pre approval review, a lender reviews your finances to determine if you can afford a home and if so what is the maximum price of a home you can buy. A pre approval helps you determine if there is a strong possibility that you will be approved for a mortgage once you make an offer on a home.

What is a Collateral Mortgage?

In 2015, CBC Marketplace aired a show about collateral mortgages. In this show, they highlighted that TD Canada Trust only offers a collateral mortgage option. Also that they unfortunately do not proactively provide clients with enough information on the downside of these mortgages.

Can I get a mortgage with bad credit?

There may come a time when you have bad credit. This may be due to financial challenges that are out of your immediate control such as by co signing for someone that doesn’t make their payments on time. Or perhaps there have been some credit challenges from a break up when you had shared credit.
Fortunately, having bad credit does not limit you from owning a home. There are options to get a bad credit mortgage in Ottawa.

What is a private mortgage?

Let’s look at what a private lender mortgage is, the type of mortgages that private lenders offer and what are some of the benefits and downsides to these mortgages.

How Do I Find the Best Mortgage Broker in Ottawa?

A mortgage will probably be one of the largest financial obligations you will have. As there are so many banks and lenders available with different options at each bank and lender, it can be tricky to know which one is the right fit for you. The best mortgage broker in Ottawa can help you with the complex task of finding the best mortgage for your needs.
If you are interested in finding the best mortgage broker in Ottawa to assist with getting your mortgage, here are some great tips to follow.

What Do Mortgage Brokers in Ottawa Do?

There are many mortgage brokers in Ottawa to choose from. Finding the right one for you may seem like an overwhelming task. Also, if you are used to dealing directly with your bank, adding another person to the process may seem like an unnecessary step.
This article is here to assist with understanding what Ottawa mortgage brokers do and how they can help you. It is designed to alleviate the stress that may be involved if considering to work with one. The information in this article can benefit anyone however focuses on first time home buyers.
After reading this, you will have a better understanding of what mortgage brokers do and don’t do. Also, how mortgage brokers compare versus banks.

What Are the Best Mortgage Rates in Ottawa?

Compare some of the best mortgage rates in Ottawa and Ontario from a large range of Canadian lenders. Contact me today to get expert guidance and to see if I can negotiate you a lower mortgage rate.

Let’s put your mortgage on my mind instead of yours.

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