What will a mortgage broker or agent do for you?
Getting a mortgage is often the largest financial commitment Ontarians make and many homebuyers find that there are several benefits to using a mortgage broker or mortgage agent. Mortgage brokers/agents provide options and information to guide consumers through the mortgage application process. Some lenders will only work through brokers or agents.
What is a Mortgage Broker/Agent?
Mortgage brokers and agents are licensed professionals who work for a licensed mortgage brokerage and it is with the brokerage that you enter into a legal relationship. Mortgage brokers/agents can identify a large number of lenders and options for you, although many work directly with just one or two lenders. Licensed mortgage brokerages and their agents and brokers can act on behalf of the lender, borrower or both.
Depending on the type of license, the licensed professional you deal with may be a mortgage broker, or mortgage agent. Here, “mortgage broker” is used broadly to refer to either of these individuals.
- Look at your finances to determine the right type of mortgage product for you.
- Assess and compare proposed mortgages and determine if you meet the lender’s criteria and if the mortgage is suitable for you.
- Gather whatever information and documents are needed, and make sure all the paperwork is complete and submitted for the lender to approve.
- Negotiate with the lender regarding rate and term, liaise during the closing process, provide administration.
Working with a Mortgage Broker/Agent
- They can also explain the application and approval process and answer any questions you may have, and review the rate, terms and conditions of the mortgage.
From your initial meeting with a mortgage broker to the closing of the transaction, mortgage brokers are subject to a series of regulatory requirements as well as industry accepted practice standards.
Establishing the Relationship
Mortgage brokers are expected to ensure that you, the borrower, understand the relationship you are entering into with the mortgage broker and the services to be provided to you. Mortgage brokers should provide you with information about their role as well as other key aspects of the transaction.
Qualifying You for a Mortgage
Mortgage brokers need to obtain information from you in order to advise you of your mortgage option(s) and obtain approvals from lenders.
Providing Mortgage Options
Mortgage brokers are expected to provide you with option(s) that are appropriate and suitable to your circumstances based on an assessment of the lender, the mortgage, its structure, its features and its risks in light of the information you have provided on your needs and circumstances.
Submitting the Application
Mortgage brokers will assess and submit your information to the lender you select from their options for approval.