What is the role of a mortgage broker?
When it comes to mortgage brokers and what they do, there are quite a lot of myths and misunderstandings.
A mortgage broker is a licenced specialist with the Alberta Real Estate Council (RECA). A mortgage broker must meet educational and professional conduct standards, as well as pass background security checks, in order to receive this credential. Check VIP Finance Brokers – Melbourne Finance Broker.
What distinguishes a mortgage broker from a bank?
A mortgage broker can never be linked to your neighbourhood bank. Each one has a distinct role and function. An independent mortgage broker is just that: they are unaffiliated with any particular lender. That means it is their responsibility to provide you with impartial advice.
They’re essentially specialists in the field of mortgage lending who have been educated and approved. Their main goal is to serve you, not the lender. They shop the mortgage market for the best cost, term, and product for the customer, but they also provide debt consolidation and credit recovery services.
The best part is that a mortgage obtained through a broker works in the same manner as one obtained through a local lending institution. There are solutions for online banking, accelerated transfers, and pre-payment. It’s easy and painless.
MYTH#1: Mortgage broker interest rates are too high.
TRUTH: Only a mortgage broker will get you the best interest rates in the industry.
Why should I use a mortgage broker who is not affiliated with a bank?
Working with a broker who can represent your interests and ensure that the mortgage you get is the right fit for your needs pays off. Any major lender in Canada has direct access to mortgage brokers. If you’re dealing with a chartered bank, a trust or insurance firm, or a private lender, each has its own set of rates and product features. The most important thing to remember is that many of these lenders can only be reached through a mortgage broker. You’ll want to make sure you have the right one for you.
If you’ve chosen where to apply, the way you present your application and who you send it to will have a big impact on whether or not you get a loan. A mortgage broker is qualified to present the application in such a way that it receives a prompt and favourable response. Depending on the workload of the lender, a broker will receive a response from a lender and secure you financing in as little as 1-3 days.