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Quebec Mortgage .info |
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Quebec Mortgage Broker Quebec is unique in all of North America as its laws are based on the Civil Code. The law permits mortgage brokerage to be performed by those in the finance industry, as well as those in the real estate industry. Source: Wikipedia Mortgage broker or bank officer, that's the question? Are mortgage broker evil? The answer will be the same if the question was "Are lawyers evil?". There are always some bad apples in any industry. There is a difference between a mortgage broker and a bank officer. A mortgage broker works for himself or herself. A bank officer works for the bank. A mortgage broker don't get paid if he/she does not close on a deal. A bank officer on the other hand still get his salary at the end of the month whether or not he closes a deal. If you are working for yourself, aren't you going to be more diligent, hard working, and do your best for the clients. Canadian mortgage brokers get paid a fee by the financial institution when he is successful in closing a mortgage deal on behalf of the financial institution. The fee is pretty much based on the amount and term of the mortgage. Interest rate does not affect the fee. Therefore Canadian mortgage broker has all the incentive to seek the lowest possible rate for you from a number of financial institutions, just so that he can close the deal and get paid. There is no benefit to the broker to quote a higher rate. On the other hand the U.S. mortgage broker works differently. The U.S. mortgage broker gets an interest quote from the lending institutions and add a small percentage for his fees. The more the mortgage broker adds the higher his fees. His or her incentive is therefore to quote you a higher rate as far as possible. All Canadian mortgage brokers are licensed and regulated by the Provincial authorities. Most Canadian mortgage brokers are likely to be member of one or more of the professional mortgage broker associations such as:
There are certain advantages to deal with a mortgage broker: Canada Mortgage broker can negotiate rates on your behalf with a large number of lenders concurrently. Sometimes they play one lender against another lender to your benefit. You only need to fill one application. The Mortgage broker will use this standard application to approach as many lenders as are necessary to get your mortgage approved. If you have to do it on your own, you will have to visit many lenders across the city and fill many application forms. You do not pay any fee to the mortgage broker. The mortgage broker works for you for free and get paid by the lenders. Only in rare cases you may have to pay a fee but the mortgage broker must advise you upfront. Canada mortgage broker checks your credit rating only once. If you deal directly with lenders, each lender will check your credit status separately and may result in a deterioration of your credit score. Canada mortgage brokers have to abide by the guidelines and ethical directions of the Canadian Mortgage Broker Associations such as:
Mortgage Brokers Association of British Columbia (MBABC) ...Learn moreCanadian Association of Accredited Mortgage Professionals (CAAMP) formerly Canadian Institute of Mortgage Brokers and Lenders (CIMBL) ...Learn moreAlberta Mortgage Brokers Association ...learn more
source: CMHC |