FAQ of Mortgage Broker
Are mortgage brokers free?
For you (the home buyer), Mortgage Broker services are free. Mortgage Broker fees are paid out by the lending institution.
Do mortgage brokers cost more?
No, mortgage brokers can offer competitive rates that meet or beat those of retail banks, so they should be considered alongside banks when searching for financing. They have the ability to shop numerous lenders at once so they can find the best pricing based on your needs.
Do mortgage brokers need to be licensed?
While licensing requirements do vary by province, mortgage brokers must be licensed and complete a criminal background check including fingerprinting. Credit checks and minimum experience are also often required. Additionally, brokers must usually complete pre-license education and some must take out a bond or meet certain net worth requirements.
Are mortgage brokers regulated?
Yes, mortgage brokers are regulated and must comply with a large number of rules to conduct business.
Do mortgage brokers service loans?
Typically they do not service loans. Mortgage brokers work with banks and lenders that eventually fund your loan. These banks will either keep the loan on their books or sell it off to another company that may service the loan. Put simply, there’s a good chance your loan servicer may change once or twice after your loan closes.