A mortgage broker’s 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 Does a Mortgage Broker Get Paid?
How Does a Mortgage Broker get Paid?
As a mortgage broker does not work for the bank, you may wonder how does a mortgage broker get paid or if you have to pay them. Fortunately a mortgage broker’s service is typically free to you. Similar to when you buy a home and use a real estate agent and the seller typically pays for your agent. When you get a mortgage with a mortgage broker, the lender pays the mortgage broker. With that, they are free to you.
A mortgage broker can find you the best mortgage rates upfront and at no cost, just like booking a trip on Expedia means savings upfront and a free service.
If there is ever a time where a mortgage broker charges a fee, the fee is disclosed to you upfront and you need to sign a form agreeing to the fee. That assures there are no hidden fees. Times a fee may arise are with alternative and private lending, construction mortgages and so on.
Contact me anytime to learn more about what a mortgage broker does and how a mortgage broker gets paid.
What Does a Mortgage Broker Do?
Many do not have the time to contact dozens of lenders to explore mortgage options when looking for a mortgage. Also some lenders only offer their mortgages through mortgage brokers. Therefore, if you value your time and want to be sure you are reviewing all your mortgage options, just visiting a few banks will not be enough. While you may have explored one bank’s options in an hour, a mortgage broker can show you many banks and lenders in that same hour.
A mortgage broker has access to many types of lenders too. From banks such as TD Canada Trust and Scotiabank to credit unions like Alterna Savings and even Manulife.
Also, with your one application and one credit check, a mortgage broker can use this with exploring many options. When you explore options at many banks however this will mean multiple application. Plus, multiple credit checks which can use up valuable credit points.
Learn more: Equifax.ca
Mortgage brokers can also access private lenders in Ottawa for a private mortgage.
Learn more: Private Mortgage Ottawa
Contact me anytime to learn more about ‘how does a mortgage broker get paid’.