The following is a list of some of the frequently asked questions (FAQ). The FAQ will help you understand Ontario mortgage brokers and the overall mortgage industry in Canada.
Who is a mortgage broker?
A mortgage broker is the individual/firm that acts as a link between a mortgage lender and a borrower.
A broker will get as much information as needed from you to come up with the most suitable mortgage deal. If you take up the deal, he/she will work on the deal (on your behalf) for a fee.
Do mortgage brokers offer free services?
Like many other loan originator, a mortgage broker charges a fee for his services. The fees from different brokers (offering a similar service) may vary widely.
In addition to the fees they charge, mortgage brokers may get compensation from lenders for connecting them with borrowers.
Generally, Ontario mortgage brokers are paid by the lender. So, if a broker isn’t charging you directly, he is getting paid by the lender.
Do mortgage brokers have to be licensed?
Although licensing requirements vary from one province to another, mortgage brokers must be licensed to operate in Ontario, Canada.
According to FSCO, “A licensed mortgage agent who plans to become a principal broker or supervise other agents must become licensed as a mortgage broker.”
To be licensed, a broker must complete (and pass) pre-license education.
Are mortgage brokers regulated?
Yes, mortgage brokers are regulated in Canada. Provincial governments determine the laws governing the mortgage industry in Canada. Ontario mortgage brokers must comply with the Act and Regulations.
The MORTGAGE BROKERAGES, LENDERS AND ADMINISTRATORS ACT, 2006 regulates mortgage brokers in relation to: Standards of practice, Duty re authorizing brokerage, Restriction re remuneration, Remuneration, non-monetary incentives, Remuneration, personal corporation, Use of licensee name, Use of name in public relations materials, Prohibition re public relations materials, Duty to provide license information, Required addresses.
Do mortgage brokers cost more?
No. Since mortgage brokers deal with more than one lender, they can offer competitive interest rates that beat those of retail lenders.
Since Ontario mortgage brokers have the ability to shop numerous lenders, they can find the best mortgage deal based on your needs. Whether you are a first time home buyer, looking to refinance your mortgage or renew your mortgage, the mortgage brokers at the Richmond Lending group work to get you the best mortgage rates and mortgage solutions.