Mortgage Broker Myths

Myth #1: Mortgage Brokers charge large fees.

Except in the case of a Commercial Mortgage or a Private Mortgage, Mortgage Brokers are compensated by the lender after your mortgage closes.  Therefore, you DO NOT have to pay a fee for a mortgage broker’s services. However, in unusual/special circumstances, where you have agreed to pay a fee, that fee must be disclosed to you in writing.

Myth # 2: Mortgage Brokers work for a bank.

Mortgage Brokers are independent mortgage experts and do not work for any lending institution.  Our job is to find you the best mortgage that meets your needs, with the best rate for your circumstances, with the best prepayment privileges, and with the lowest cost to break the mortgage during the term.

Myth # 3: Mortgage Brokers only work for clients with credit issues.

While we do have mortgage lenders that can help in the event you have some credit issues, Mortgage Brokers usually work with a wide range of bank lenders that can offer you the best mortgage for your needs that is, in most cases, is better than what a retail bank branch can offer.

Myth # 4: Bank Representatives are Mortgage Brokers.

Bank representatives can be called a number of things (IE: Specialists; Account Adviser; Consultant), but Mortgage Broker is not one of them, as they “specialize” in their banks products and do not have the ability to “broker” a deal from a direct competitor. (IE; RBC Specialist cannot offer a TD mortgage). In addition bank specialists do not have the licensing and educational requirements of Mortgage Brokers.