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What is a Mortgage Broker?

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A mortgage broker (or mortgage consultant in some jurisdictions) is an independent agent, an intermediary between you the consumer and the mortgage lender. The mortgage broker will shop the available lenders to find the mortgage product that offers the best combination of features, options and rates to suit your individual circumstances. The best part - depending on your credit picture - there is no charge to the consumer for the service! The mortgage consultant’s fee is normally paid by the lender.

Why use a Mortgage Broker?

With the fluctuation in interest rates of late, homeowners have become more aggressive in seeking out the best possible terms from a lender. The appeal of a mortgage consultant lies in the opportunity for you to effectively search a large segment of the mortgage industry for the optimum terms, rather than negotiate personally with only one or a few lenders. As a result, the popularity of mortgage brokers is growing - more mortgages in Canada are being concluded through a mortgage broker than ever before.

A mortgage consultant can also be an independent source of information and an unbiased help in wading through the myriad of options available in the mortgage industry today. Wondering about the advantages of refinancing? Want more information on the Home Buyers Plan? How about advice on adjustable term mortgages? Maybe you’re having problems getting a mortgage because you’re self-employed or you need special help arranging financing for an investment property. These are the kinds of issues a mortgage broker can help with and usually at no cost.

There Are 5 Responses So Far. »

1. 

   Comment by mwieler on 22 February 2009:

   I believe another important fact to mention as well is the difference between an (AMP) Accredited Mortgage Professional, and a Mortgage Broker.

   An Accredited Mortgage Professional has at least 2 years experience in the industry, continually takes educational courses to maintain the title, and operates with a higher level of ethics and responsibilities than a Mortgage Broker.

   The difference could be compared to an auto mechanic that works out of his home as compared to a Certified Auto Dealership. The Dealership has all the mechanics that are trained professionally and have proper up to date tools at their disposal, and have people you can talk to if something is not right. You have a greater level of comfort knowing if something were to go wrong at the Dealership, they will do their best to make it right.

   Whereas with the rouge auto mechanic, you may not know what to expect, and if something does go wrong, you would have to make it right with him directly since there is no authority to talk to about his service.

   The organization that talks more about AMP’s and governs the Mortgage Brokers across Canada is called CAAMP.

   You can read more about it on the link listed below:
   http://www.caamp.org/download_docs/CAAMP_AMP-application-form.pdf
2. 

   Comment by Elizabeth Blair on 25 February 2009:

   I do not agree with this comment. FSCO: Financial Services Commission of Ontario has established educational guidelines that everyone who is licensed must comply with, in order to maintain their licensed status, whether they are Brokers, Agents, or whether they belong to IMBA or to any other broker organization in Ontario.
3. 

   Comment by Matt Wieler on 25 February 2009:

   I appreciate the comment Elizabeth, you are correct. The province of Ontario does a great job of regulating and educating. It is leading the way for other provinces to take the same steps they have. The problem is all the other provinces are not Ontario.

   The point I was trying to focus on was how consumers should be cautious on just the title “Mortgage Broker”. Consumers should ensure that the “Mortgage Broker” you are entrusting with your sensitive information has level of professional expertise and that they have the time experience in the industry as well. I think most people would feel more comfortable to work with someone that’s been doing their job for years rather than a few weeks.

   In Ontario, you are 100% correct. However in other provinces across Canada, “Mortgage Brokers” are all not provincially regulated like Ontario, and can in some provinces not even be regulated at all.

   I truly was trying to reference the need for consumers to work with educated professionals, and what the AMP title means to Canadian Consumers.
4. 

   Comment by Dean Sabourin on 9 March 2010:

   Matt, you might want to do your homework! With the exception of NB & PE, all provinces have regulations. Also please keep in mind when the AMP first came out, you needed to prove 5 years experience to get it. Only in recent years, when agents with minimal experience were being pressured to get the AMP, the Mortgage Broker Owners were lobbying CAAMP lower the requirements, which they (CAAMP) did to the current 2 years. The truth is Matt, there are many mortgage agents in Canada that have the AMP that can’t even spell mortgage, let alone know how to process one.

   As an additional note, your website is not compliant and you (an AMP) are misleading the consumer. You are a based in MB, yet you claim you have the ability to write mortgages in all Provinces. Please show your clients copies of YOUR license for NS, NL, BC, AB, & ON. We will be sure to lodge a complaint with CAAMP and the various provinces about your misleading advertising.

   When you have a license in multiple provinces and over 23 years experience in this industry and can prove you earned your AMP, then you can brag.
5. 

   Comment by Matt Wieler on 10 March 2010:

   Dean,

   Wow.. I’m sorry I struck a wrong cord with you. At the time I posted this comment about the AMP, I was trying to highlight the AMP title that it was to reference experience and industry, and not just a title of “mortgage broker”. Unfortunately there is no delete button, or ‘edit’ button where I can go back and change my past comments about the AMP. At the time I hit the submit button, I felt I provided current information about the AMP and my opinions at that time.

   I was confused with your 2nd comment at first, but I think that you’re specifically not happy with my Bio statement “helping all Canadians” I had in my profile on this website. I originally posted that statement when I opened my Professional Referrals account, and since that date, you are correct a lot of provinces have changed their regulations, including the provinces you have mentioned above. I would agree with you that that statement is misleading.

   At the time I filled that information out in my Bio, both lenders and super broker offices were willing to accept applications from brokers in all provinces allowing the co-brokering with licensed agents each province where agents were licensed utilizing their networks to access Canada as a whole. This used to be common practice. Normally each individual broker did not individually have to have a brokerage license in that province in which the mortgage was being registered. Since that time, lenders have stopped this practice and it’s no longer acceptable for a broker to work outside his jurisdiction.

   As my business is situated here in Manitoba and not in other provinces, I have changed my profile to reflect that accordingly. I know it was my responsibility to keep that statement current. I am not on this site a lot and you can accurately accuse me of overlooking that.

   Thanks for bringing that to my attention in the professional manner you choose to do that in.

   Thanks Dean

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