The three distinct 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 through mortgage brokers or sometimes mortgage marketers – taux hypothecaire. The bank representative will still offer a mortgage loan (in addition to the other banking products the bank offers) but only for the one bank.
The mortgage marketer: He only deals with loans, with a specialty in mortgage loans. He is paid 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 lending institutions. He specializes in mortgages and is paid a commission. This commission is paid by the bank 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) lately. A mortgage broker works with many lenders, usually 30 or more and can choose the best one for each client. Today, more than 12,000 mortgage brokers operate in Canada, with 27% of the mortgage market.)
(Note: I have tried to be as neutral as possible, but the fact is that I am a mortgage broker – taux hypothecaire. Therefore I want to inform you right away that I believe that it is better to work with a mortgage broker to finance your property.)
No matter what, it is the integrity and expertise of your mortgage consultant that will make the most difference. There are very good local bank branch representatives, very good mortgage marketers and very good mortgage brokers. Of course, there are very bad ones as well. It is the person in the position who will make the most impact in the long run.
You can be sure of one thing, it is the integrity and expertise of your mortgage consultant that will make the most difference. There are very good local bank branch representatives, very good mortgage marketers and very good mortgage brokers. Of course, there are some really bad ones as well. It is the person in the position who will make the most difference in the long run – taux hypothecaire.
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 matters.