Canadian Mortgage Brokers

The Canadian banks and financial institutions are not your only choice when getting a mortgage in Canada. You can get a mortgage through a Canadian mortgage broker. Mortgage brokers have access to several mortgage lenders and they essentially do the mortgage shopping for you. Mortgage lenders can offer you different mortgage loans from different lenders, thus giving you the opportunity to choose a mortgage that best suits you.

Mortgage brokers act as middlemen between mortgage buyers and businesses or individual buyers who want to buy or sell mortgages. The mortgage broker is responsible for obtaining detailed information about the mortgage as to evaluate if it is a good deal. In addition, he or she acts on behalf of clients and helps them with the paperwork. The job of mortgage brokers is considered attractive due to the flexible working hours, the possibility to work for yourself or as a part of a team, and the good money one can make.

In Canada, most activities of mortgage brokers are regulated not by the Government, but by provincial laws, and are therefore subject to varying concessions and limitations. To be allowed to operate in a particular province, a company must first meet certain local criteria and obtain a brokerage license for that province.

Regardless of the area where they work, however, many mortgage brokers are able to provide free services to their customers as they are paid a commission fee by the lenders. If a brokerage company does charge a fee for its services, they must announce it to the borrower before any loan commitment has taken place.

To work as a mortgage broker in Canada, one needs to at least finish a course on mortgage agent education and pass an exam. One can either sigh up for a class online or attend it personally. Upon successful completion of the course, you have to apply for a license following the requirements of your respective province. Each applicant for a mortgage broker license should meet a number of requirements under the Mortgage Brokers Act. Applicants should be Canadian citizens, corporate residents, or landed immigrants and at least 18 years of age. They should provide evidence which proves they are financially responsible. If trust funds should be taken, applicants should be able to open a trust account. In addition to these requirements, applicants should submit an enclosed application, together with a fee which is non-refundable, proof of the successful completion of a course, and other information. In the actual application form, applicants need to fill in their personal details, employment history, information of previous bankruptcies and bankruptcy proceedings, previous convictions for breech of law, and other important details. Once you have been granted a mortgage broker license, you can start providing services. You can become a mortgage referral agent, network with a variety of real estate agents and look for potential mortgage clients. Your pay will be most likely based on the volume of mortgages per month, as well as a percentage of the commissions paid by institutions for funded mortgages.

If you prefer to work as a mortgage specialist, you will have to dedicate over forty hours a week to build a client base. You should be seeking out mortgage clients and building a list of personal and business clients.

It is important to note that mortgage brokers offer loans that are provided by various lending institutions. They are not lenders themselves. The task of the mortgage broker is to look for mortgage offers from lenders and then offer these to potential borrowers. Mortgage brokers either work at a brokerage firm or individually.

To find the best deal for individual clients, the broker asks about their preferences and requirements. Then, he contacts lending institutions that offer such mortgage loans. Most seasoned brokers have contacts with persons in the banking business and can find loans quickly.

Mortgage brokers can secure a loan to individuals with poor credit score as they maintain contacts with a large pool of Canadian mortgage lenders. In fact, some loans are intended for persons with poor credit. Finding these may be somehow difficult, especially the ones with good terms and conditions. However, the mortgage broker will be able to provide a variety of lending options.

After the client has chosen the best offer, the mortgage brokers will prepare the required documentation (property appraisals, employment record, asset disclosures, credit report, etc). Clients just fill in their personal details in the application form for the mortgage loan.