Mortgage Broker

Consumer Guide 2015 mbabc.ca | 31 O ne of the key benefits of working with a mortgage broker to secure mortgage financing is that you get access to a far greater number of lenders than you would on your own. Not only will a mortgage broker do the shopping around for you, saving you the trouble of comparing rates and terms from one financial institution to another, but a mortgage broker can shop the entire mortgage marketplace that an individual borrower does not have full access to. This is because there are a number of lenders, including wholesale lenders, that work exclusively with mortgage brokers – homebuyers cannot apply to them directly, and many of these lenders offer exclusive rate specials only to mortgage brokers. Access to these lenders is crucial because when it comes to a mortgage, an attractive rate is only the beginning – it's important to find the best mortgage product and loan terms to fit your unique needs and situation. If you prefer to get your mortgage with your current financial institution, your mortgage broker can still help, as mortgage brokers have strong relationships with many of Canada's well-known banks, credit unions and trust companies. "Since mortgage brokers work only on mortgage applications, they are far more skilled at processing and negotiating your mortgage application compared to some loan officers at financial institutions," says Samantha Gale, CEO of the Mortgage Brokers Association of BC (MBABC). "On top of that, mortgage brokers deal in massive volume amounts that offer far better buying power and put them in a better position from which to negotiate on your behalf." Homebuyers with challenging applications – such as borrowers who represent a greater risk to the lender due to poor credit history, or borrowers looking for bridge financing – also reap the benefits of dealing with a mortgage broker. Mortgage brokers have access to an array of lenders that may still offer a very competitive interest rate because they specialize in providing mortgages to these types of borrowers. These lenders may not be household names, as they don't have storefronts or deal directly with members of the public. From household names to lesser-known brands, you can rest assured the mortgage your mortgage broker finds you is with a reputable lender By Tiffany Sloan SHOPPING THE MORTGAGE MARKETPLACE However, they are multibillion-dollar lenders that are just as safe, credible and highly regulated. Canadian banks are regulated by the Office of the Superintendent of Financial Institutions, an independent agency of the federal government. Similarly, in B.C., credit union and trust companies are regulated by the Financial Institutions Commission (FICOM), and monoline mortgage lender and private mortgage lender interactions with borrowers are regulated by FICOM's Registrar of Mortgage Brokers. It is FICOM's role to protect the public and enhance the integrity of the mortgage broker industry in B.C. by supervising financial institutions and ensuring they comply with provincial laws and standards. Following are five types of lenders your mortgage broker may consider for your home loan: Banks and credit unions Mortgage brokers deal with some of Canada's largest banks and credit unions. "TD Bank, Scotiabank and National Bank of Canada are a few of the well-known banks that offer fantastic support to mortgage brokers when dealing with your mortgage application," says Gale. "So even if you're looking specifically for a mortgage with your current bank, talk to your mortgage broker first." There are close to 50 different credit unions in B.C., and your mortgage broker may look to one in your area for your mortgage. "Credit unions are able to provide mortgages that are very similar to those offered by banks," explains Gale. "Their rates are just as competitive as those of financial institutions. But the regulation of credit unions provides a little more flexibility than those of banks,

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