There are three kinds of mortgage consultants:
• The representative of the local bank branch: They only offer loans, and have many other duties besides mortgage loans, are salaried, with a possibility of an annual bonus.
Traditionally, it is the local bank branch representative who acts as the mortgage consultant. He is the only one who is able to make a mortgage application for clients – taux hypothecaire. The world of mortgage financing has changed and almost all lending institutions offer their mortgage products through mortgage brokers and, in some cases, through mortgage marketers. The bank representatives continue to offer mortgage loans (as well as other financial products) but only for the bank they work for.)
• The mortgage marketer: He only handles loans, with a specialty in mortgage loans. He is compensated by the bank that he originates the loans for.
A recent trend is for banks to hire local reps in order to give better service to the client. A mortgage marketer (taux hypothecaire) will go to the client, but he works for the bank that hires him. He is paid a commission on the amount of the loans he originates.
• The mortgage broker: The broker offers the loan products of many lenders. He specializes in mortgages and is paid a commission. This commission is paid by the lender that the loan is placed with.
Mortgage brokers have been dealing with mortgages for more than thirty years but have only become an import part of the mortgage market (taux hypothecaire) recently. A mortgage broker works with many lenders, usually 30 or more and can pick the best one for each client. Today, more than 12,000 mortgage brokers operate in Canada, with 27% of the mortgage market.)
(Please note that, although I try to be neutral on this topic, I am a mortgage broker – taux hypothecaire. I want to advise you that I believe working with a mortgage broker is the best way to go when you are shopping for a mortgage for your home.)
One thing is certain. It is the expertise and integrity of the consultant that will make the difference. There are excellent local bank branch representatives, excellent mortgage marketers and excellent mortgage brokers. However, the opposite is also true.
The service of the person with whom you will work is most critical.
Of this you can be sure: the expertise and integrity of whatever consultant – taux hypothecaire you work with will make a critical difference. Yes, there are expert local bank branch representatives, expert mortgage marketers and expert mortgage brokers. And then, there are those who do not fully understand this field.
It is the person in the position that is most important.
Mortgage brokering has become more popular
The CMHC did a survey that indicated that in 2004 more than 26% of the home loans in Canada were financed with the help of a mortgage broker. Even so, it is the individual and his integrity and expertise that will matter most (taux hypothecaire).