Mortgage brokering is not a new phenomenon, it has been around for decades. In the past, only those who had bad credit would use the services of a broker. As higher risk transactions, generally rates would be higher, loan to value ratios were lower(than mortgages with good credit risks)and brokers were paid for their service by the borrower(called a broker fee),not the lender. Brokers dealt primarily with private lenders as opposed to institutional lenders, and were used as a ‘last resort’
Today’s mortgage broker industry is growing in leaps and bounds because it specializes in all types of mortgages, credit types and financial circumstances. However, mortgage brokers are increasingly chosen as a ‘first’ source of prime lending needs, accessing hundreds of mortgage products and dozens of mortgage lenders in finding the best ‘fit’ for today’s clients. Now, one in every four Canadians choose mortgage brokers because they recognize the many benefits of having a mortgage professional work in their best interests to get them the best possible solution.
Today’s reality is that consumers are realizing more and more, that finding that best mortgage can best be done with the assistance of a professional mortgage broker, as opposed to doing it themselves. today’s mortgage market is more sophisticated and complex than ever and it encompasses a mind boggling array of mortgage options. As a result, the vast majority of brokered mortgages today are prime institutional mortgages as opposed to private mortgages, and the best news, is that the broker’s services are usually free of charge as institutional lenders pay mortgage brokers a ‘finders fee’ for originating mortgage business.
Brokered mortgages not only mean a superior end result, but also save the consumer time and money, often considerable money. In short, those who have used the service know first hand that is a ‘win win’ scenario, and they usually have no hesitation in recommending it to friends and relatives, especially since they know that their mortgage broker acts ‘in their best interests’, is on ‘their side’ and is much more accessible/available than the bank, which invariably means better service.
So, to answer the question “Who uses mortgage brokers?” People who want the best service, unbiased; professional advice, and ‘one stop shopping’ access to the best rates, mortgage products and terms in the marketplace, that’s who. This means that still 3 out of 4 Canadians are likely making higher mortgage payments than they need to, and are paying thousands of dollars in interest to their friendly banker, that otherwise would go in their pockets. Smart people also have learned that they can obtain the lowest rate the first time, everytime without having to negotiate with the bank(which is often not possible) because skilled, knowledgeable brokers do this for them.
Today’s 5 year fixed bank rate is 5.95%. Our best Variable is .60% below prime or 2.15 % Visit us at www.ronandtracy.ca