When you’ve been in the business as long as I have been, it’s a constant struggle to remind yourself that some of the most basic understanding of how mortgage brokers work is not known by the public. Once in a while someone will ask the question, and I’ll say, Oh Ya, they didn’t know that.
This happened yesterday when someone asked me if there is a fee for my service and who pays it?
My “job” as a mortgage broker (I am a registered mortgage broker, not an agent- save that for another days post) is to arrange mortgage financing for people either purchasing a home or refinancing a property that they already own. I love what I do, it was a career choice I made 28 years ago and to do it full time, I have to earn a living. I think most of you can relate to that. So who pays me?
Most people in my business are self-employed, 100% commissioned paid, which means we are NOT paid a salary. I also do NOT work for any one bank/lender. I deal with likely 20 different trust companies, credit unions and banks, therefore have a choice of which lender best suits your needs and has best rate on any given day. I’m paid by the lenders who I place your mortgage with. If you qualify normally, borrower do NOT pay me a broker’s fee, the lender pays me, AFTER you get your money, and generally that is the only time I will get paid.
So you quickly realize how important it is that I keep you happy! If I don’t keep you happy, I don’t get paid. And after you close, if you don’t happily refer me to friends and family, my income stops.
So only a happy client creates a happy business model for me, therefore I guarantee you great service and great rates right up until closing date.
The only exception of being paid by the lenders is when I am arranging financing for people where there are circumstances that require funds from private or “B” type lenders. This occurs when due to either poor credit, or income issues, the normal “A” type bank won’t approve the mortgage. In these scenarios, a broker fee may be charged to the client, but these fees must by law, be disclosed up front. Remember that when funds are required when the big banks say NO, I am always ready to come up with a “plan B”. So the ONLY time a broker fee is charged is when I am arranging funds where generally the banks can’t help you.
If you’re looking to purchase or finance a home, remember to do your homework and ensure you get a mortgage that is a fits your needs and gives you best rate. That is what I do every day, and do it well. The only thing I ask is that you remember that I am NOT paid a salary. I provide a service to you that is paid for by the lender, but I ONLY get paid if I keep you happy with a mortgage that suits your needs.
So feel free to drop me a line at 613-222-2624 if questions or visit www.mortgagemoney.ca for 24 hr day, 7 day a week information at your finger tips.
Have a great weekend,