06 Jun Interview Your Mortgage Broker
Mortgage Professional in Toronto: Finding and Interviewing the Right One for You:
Mortgage professionals in Toronto are a dime a dozen. Finding the right one can be difficult if you are not sure what you want to do with your mortgage or how much money you need. That is why it is important that you take your time and interview multiple candidates before making a decision about who will help guide your financial future. Below, we have outlined some questions that should be asked during an initial meeting with potential mortgage professionals in Toronto to ensure they are the right fit for your needs.
What is the average commission for a mortgage broker in Canada?
A mortgage broker in Canada, like the one you are interviewing, is typically paid a commission of between 0.25 and three percent for each loan they process. The average amount varies depending on the type of mortgage or lender with which your potential candidate does business. Again, this information should be disclosed before asking any other questions or signing anything else.
How much do mortgage brokers make in Canada?
Mortgage brokers typically make between $50,000 and $200,000 per year. Again, the amount varies depending on their commission rate and how many loans they process each month.
Why you shouldn’t use a mortgage broker?
Due to the complexities of today’s mortgages, many people have found success in working with mortgage brokers. Most notably, they can assist you by identifying a variety of loan programs that might be available for your specific needs and circumstances at a given time. However, there are some things to watch out for when it comes to choosing which one to work with.
You should make sure that the mortgage broker is licensed and registered with FSCO. In addition, you will need to know what type of license they have before hiring them because not all brokers are allowed to work on every type of loan products available in today’s market. For example, some only specialize in refinances or second mortgages. You should also know what type of fee they charge. FSCO requires that mortgage brokers disclose the fees, and whether or not it is a flat rate or percentage on top of your loan amount. You will need to be aware because some brokers may take more than you are comfortable with paying in order for them to generate income from their negotiations with lenders.
How do mortgage brokers avoid fees?
They can work for a big national bank or with a mortgage broker that works only at small banks and credit unions. Plenty of brokers are independent and own their own firms. Brokers typically charge fees to help people get mortgages so they take on more risk than lenders do. They also have expertise in understanding how complex loans work which helps them steer customers away from those that carry high risks such as interest-only loans.
The right Toronto mortgage professional will find the best loan for your situation and help you make it happen! Mortgage professionals earn commission from the lender, not you – meaning they don’t stand to lose any money if something goes wrong with your application. For certain complex transactions, a mortgage fee is applicable and disclosed to you before the mortgage is submitted.
In general, brokers are paid as follows:
-A fee from you for helping to find and submit your application
– A commission from the lender based on how much they approve for your loan amount (usually a percentage of that total)
Tips when hiring a Toronto mortgage broker:
Ask about their experience – not all mortgage professionals have been in this industry forever! Brokers should be able to provide some history with specific lenders or credit unions which can give you peace of mind if things go wrong down the road. If they don’t know what mortgages are available, it may not be worth speaking with them further. Make sure there’s an understanding about who will pay any fees associated with the transaction.
We have further information and fun tidbits on the city of Toronto in our next guest post opinion blog.