Why use Mortgage Broker

Mortgage brokers in many cases can save individuals both time and money.  Today, many house purchasers choose the services of an independent mortgage broker or mortgage agent. Their roles are quite similar and both are qualified professionals trained to design or recommend the best kind of mortgage befitting a client’s circumstances.  For instance, it is the mortgage broker’s job to find the best mortgage lender offering the most competitive mortgage interest rate. When a purchaser begins the journey of financing an ideal home, the services of a mortgage professional can be invaluable.

Mortgage Brokers

Mortgage brokers can save purchasers time and money. The types of mortgages they are able to secure are generally the same as the mortgages available at most banks, trust companies and credit unions.  In fact, in some cases, mortgage brokers are able to still place a mortgage with many of these major banks, credit unions and trust companies.

In most cases, financial institutions will not offer the best rate on a mortgage, and a borrower will usually have to negotiate the rate with them.  The fact of the matter is, many individuals are not comfortable negotiating rates with their financial institution.  Many people feel they should not have to negotiate rates with the banks as well.  Individuals feel that the best rates should be offered right off the start, but this rarely occurs.  This is exactly why banks, credit unions and trust companies have “posted” mortgage rates.

The real advantage of using mortgage brokers is that they are able to shop around for the best rate; and. can help in cases where a purchaser has a less than ideal credit rating.  On occasion, mortgage brokers are able to help secure quality mortgage financing for which a lender is willing to work with a purchaser until the credit rating has improved.  Mortgage brokers, in most cases,  receive their compensation from the lenders they work with. Superior mortgage brokers have access to dozens of different financial institutions, including some of Canada’s major banks. 

In certain cases, mortgage brokers charge extra fees when dealing with complicated mortgage transactions, or those that involve individuals with below average or poor credit scores.  In addition, fees are often charged in which individuals require commercial mortgages as well. 

Mortgage brokers typically provide the same services and functions as mortgage agents.  However, a mortgage broker normally has achieved a higher level of education.  In addition, mortgage brokers are allowed to supervise and manage agents and work directly with private investors.  Mortgage agents cannot become a mortgage broker unless they have 2 years experience in this job function during the 3 year period prior to applying for becoming a mortgage broker.  Some mortgage brokers are accredited through the Canadian Association of Accredited Mortgage Professionals as Accredited Mortgage Professionals.

Mortgage Agents

Mortgage agents can save purchasers time and money in many cases.  Mortgage agents should not be confused with captive mortgage specialists that work typically for the large banks.

The types of mortgages that mortgage agents are able to secure are generally the same as the mortgages available at most banks, trust companies and credit unions.  In fact, in some cases, mortgage agents are able to still place a mortgage with many of these same major banks, credit unions and trust companies.

In most cases, financial institutions will not offer the best rate on a mortgage, and a purchaser will usually have to negotiate the rate with them.  In fact, some mortgage specialists for banks will actually receive higher compensation or commission for not discounting a rate or providing the absolute lowest rate to a borrower. 

The fact of the matter is, many individuals are not comfortable negotiating rates with their financial institution.  Many individuals feel they should not have to negotiate rates with the banks as well.  Individuals feel that the best rates should be offered right off the start, but this rarely occurs.  This is exactly why banks, credit unions and trust companies have “posted” mortgage rates.

The real advantage of using a mortgage agent is that they are able to shop around for the best rate, and can help in cases where a purchaser has a less than ideal credit rating.  On occasion, mortgage agents are able to help secure quality mortgage financing for which a lender is willing to work with a purchaser until the credit rating has improved.   Mortgage agents in most cases receive their compensation from the lenders they work with. Superior mortgage agents have access to dozens of different financial institutions, including some of Canada’s major banks. 

In certain cases, mortgage agents charge extra fees when dealing with complicated mortgage transactions, or those that involve individuals with below average or poor credit scores.  In addition, fees are often charged in which individuals require commercial mortgages as well. 

Mortgage agents typically provide the same services and functions as mortgage brokers.  However, a mortgage broker has achieved a higher level of education.  In addition, mortgage brokers are allowed to supervise and manage agents and work directly with private investors.  Mortgage agents cannot become a mortgage broker unless they have 2 years experience in this job function during the 3 year period prior to applying for becoming a mortgage broker.  Some mortgage agents are accredited through the Canadian Association of Accredited Mortgage Professionals as Accredited Mortgage Professionals.

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Best Mortgage Rates

Variable Rate 1.94%
1 Year 2.34%
2 Year 2.14%
3 Year 2.44%
4 Year 2.49%
5 Year 2.49%
10 Year 3.84%

April 27, 2017

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