Mortgage Brokers are independent licensed professionals. They represent their clients and specialize in finding the best products for their mortgage needs. They have the knowledge and expertise of the Canadian market which enables them to find the best rates and products available so clients do not have to search the entire market themselves.
Mortgage Brokers work for you the customer, not any individual lender. Since they are not an employee of any lending institution, Brokers can provide you an unbiased opinion of the mortgage products available to you. Brokers seek out the best mortgage products to suit your specific situation, whether it's from a Chartered Bank, Trust Company, or Private Funds.
There is NO cost to you the client! Brokers are paid a referral fee by banks and lenders after they setup your new mortgage so there is never a cost to clients.
Mortgage rates can change daily, and keeping track of who is offering the best rate at any given time is nearly impossible for home owners or buyers. Mortgage Brokers keep up to date on the changing products and rates lenders are offering and know which lender to approach first. In Fact, many lending institutions will only accept mortgage submissions from mortgage brokers. This trend is becoming more popular in Canada every year. Therefore a mortgage obtained through a Broker will be among the best available at any given time.
Mortgage Lenders who work with mortgage brokers include chartered banks, trust companies, as well as corporate and private pension funds. Many of the smaller lending institutions are able to provide financing at lower rates due to their reduced overhead costs which large banks may have.
In 2012 Canadians used mortgage brokers more than ever. Every year more and more Canadians use a broker to secure their mortgage financing as shown in these stats from CMHC.
48% of First Time Home Buyers up 18% from 2006
40% of all Purchases up 13% from 2006
27% of Refinances up 5% from 2006
21% of Renewals up 8% from 2006