The three main types of mortgage consultants are:
The representative of the local bank branch: This person can only offer loans, not a full strategy, and they have regular banking duties to attend to. They are paid a salary by the bank they work for, with the possibility of an annual bonus.
The rep of the local bank branch acts the part of a mortgage consultant, and he is the only one who can submit an application. Things are different recently in the mortgage lending, and now most lenders also work with mortgage brokers or sometimes mortgage marketers – taux hypothecaire. The bank representative will still offer a mortgage loan (in addition to the other financial products the bank offers) but only for the one bank.
The mortgage marketer: He only offers loans, and specializes in mortgage loans. The bank or lender he works for pays him a commission (taux hypothecaire).
Banks now hire local reps to be able to serve the clients better. A mortgage marketer will go to the client, but he is still only works for the one bank that hired him and pays his commission (based on the amount of the mortgage of the client.)
The mortgage broker: He offers the mortgage products of many lenders, specializes in mortgage loans and works only for commission (paid by the lender).
Mortgage brokers have been around for thirty years, but have only become an important factor in the home loan market over the last few years (taux hypothecaire). Mortgage brokers work directly with many lenders (more than 30) so that they can offer the best solution to their clients. Today, there are more than 12,000 mortgage brokers in Canada who represent 27% of the market.)
(NB: I would like to be neutral on this issue, but since I am a mortgage broker, I want to let you know that I believe that a mortgage broker is the best person to deal with for a mortgage – taux hypothecaire. Otherwise, I would have chosen one of the other fields!
One thing is certain. It is the expertise and integrity of the advisor 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 individual with whom you will work is most critical.
Of this you can be sure: the expertise and integrity of whatever advisor – taux hypothecaire you work with will make a big 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
In 2004, a survey conducted by the CMHC indicated that over 26% of all of the mortgages in Canada were financed through the intermediary of a mortgage broker (taux hypothecaire). But remember, it is the individual you work with, his integrity and expertise that counts.