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Mortgage brokers are professionals whose primary expertise is locating funding for mortgage financing. They know where the best rates can be found. What's more, they have the knowledge required to present a proposal for financing to lenders in the best way possible to successfully obtain mortgage financing.
In addition to rates, because mortgage-based financing is the broker's primary business, he or she has developed expertise in what type of mortgage financing each lender prefers to pursue. This kind of knowledge not only results in the most favorable rates for each project, but often whether a project is funded at all.
The lenders who work with mortgage brokers include traditional sources, such as chartered banks, trust companies, as well as, corporate and private pension funds. In addition to these institutions, brokers often develop professional relationships with private sources of funds. These lenders can provide many various mortgage products not available at conventional sources.
Rates of interest are another primary concern to borrowers. Because of their daily contact with lenders, brokers know which project or home attracts a favorable interest rate from one institution, but a higher rate at another. Some institutions, in fact, will only accept mortgage submissions from mortgage Brokers. These rates and preferences for types of mortgages can change daily, depending on economic Circumstances or based on the size of an institution's portfolio in a particular type of mortgage. The current trend to 'mortgage sales' or promotions to attract certain types of loans has further complicated the borrower's search for mortgage funds. The mortgage broker keeps current and knows which lender to approach first. As a result, mortgage rates obtained by brokers are among the best at the time of placement.
You don't call an insurance company for insurance - you use an insurance broker, because of their expertise, product knowledge and rates. Contrary to popular belief, you should call your mortgage broker first and not as a last resort. A professional presentation to a lender on the first application will get the best response and save you valuable time and money. Secondary applications with previous credit bureau inquiries may be more costly. Often the success of obtaining mortgage approval depends on the way a proposal is presented and to whom it is sent.
All types of loans can be place by mortgage brokers, provided they are backed by mortgage collateral. All sizes of loans, from small loans backed by a residential property to commercial properties in the millions of dollars are readily available. Mortgage-backed loans in the millions are not uncommon with private pension funds and private lenders. In addition to handling straight mortgages, mortgage brokers are often called on to assemble financing (based on mortgage collateral) for businesses. Mortgage brokers excel in this type of financing package, because of their expertise in looking at loans from a mortgaging perspective, as well as their knowledge of financial institutions' interests and desires for a particular product at specific times. Investment Is Returned In a Short Time Mortgage brokers do not typically charge a fee for their services, but if a fee is warranted, it is negotiated up front and documented. The fee is based on the complexity, strength and type of project. The fee is a one-time only charge and is quoted once the details of the deal have been explained. Your investment in the professional services of a mortgage broker is generally returned very quickly, not only in time saved, but also in the caliber of the financing received.
Reputable Brokers Comply With Governing Body
The Alberta Mortgage Brokers Association (AMBA) is an independent, non-profit organization dedicated to highly ethical business principles and to keeping the industry at a high level of integrity and professionalism.
Ensure you are always dealing with a licensed professional in Alberta by visiting:
Real Estate Council of Alberta
Alberta Mortgage Brokers Association Canadian Association of Accredited Mortgage Professionals