If a Mobile Mortgage Specialist works for one Institution then they are first and foremost trained in that Institutions Products and prompted to sell those first. Some of the big 5 have made agreements with other Mortgage Suppliers so when a Mortgage is declined by the Financial Institution the Employee of the Institution can send the application to one of those few suppliers that have agreed to take applications from one of the Banks direct. This is only a few and the Bank does get a referral fee from the Mortgage Supplier for that Business as Independent Mortgage Agents do. Would an Independent Mortgage Broker or Agent have more options or more information about the products being offered by the Employee of their Financial Institution? An Independent Mortgage Broker or Agent has to be Educated in all the Products offered by all Mortgage Suppliers in Canada and has no direct tie with any one institution. You get an unbiased broad spectrum of options available to you through an Independent Mortgage Broker or Agent with your interests being number 1 priority.
There are 95 Canadian Mortgage companies in Canada today.
An Independent Mortgage Broker or Agent has to be Educated in all the Products offered by all Mortgage Suppliers in Canada and has no direct tie with any one institution. You get an unbiased broad spectrum of options available to you through an Independent Mortgage Broker or Agent with your interests being number 1 priority.
Some of the big 5 have made agreements with a few other Mortgage Suppliers so when a Mortgage is declined by the Financial Institution the Employee of the Institution can send the application to one of those few suppliers that have agreed to take applications from the Banks direct. This is only a few and the Bank does get a referral fee from the Mortgage Supplier for that Business as Independent Mortgage Agents do. Would an Independent Mortgage Broker or Agent have more options or more information about the products being offered by the Employee of their Financial Institution?
Business is Business and Financial Institutions are no different than any other Company for Profit. If you are regarded as a good client of any Company they do not want to lose your business so of course the products offered by that Company are going to be presented as the BEST on the market today. Without comparing what other Companies are offering for the same product or service how do you know you are getting the Best? Only an Independent Mortgage Broker or Agent can give you the whole Markets offering of products and how they will affect your individual goals and expectations for the Mortgage you seek.
This Global Financial Crisis has been determined to be the cause of GREED by big Companies. In the United States 95% of all Consumers who seek a mortgage use a Mortgage Broker. In Canada only 30% of Consumers use Mortgage Brokers or Agents. It was the laws of the Countries that were affected the worst that allowed the Greed to get out of control. In Canada we have strict laws to Govern the practice of Lending and it was these laws that kept Canada in good shape. Unfortunately sales are sales and in any industry you will find that some Sales tactics are to create fear in the Consumer. It does not cost the Consumer anything but their time to meet with an Independent Mortgage Agent to get their questions concerns or fears answered or quashed. Invest in your knowledge of Mortgage Financing with only your time.
Also known as CMHC. This is the Crown Corporation in Canada that has been insuring Mortgages since the sixties incase of default for the Banks, Credit Unions, Trust Companies and yes other MORTGAGE suppliers in Canada. CMHC is involved in supplying Training to Mortgage Brokers and Agents supporting conferences and joint marketing initiatives CMHC set the rules for Mortgage Lending and all Mortgage Suppliers must follow them. Some financial institutions have their own internal rules as well, which could include type of property that institution will lend on whether CMHC will insure the Mortgage or not. The Borrower could fully qualify for the Mortgage BUT THE FINANCIAL INSTITUTION reserves the right to the type of property they want to lend on. Sometimes could be seen as cherry picking. A Mortgage Broker or Agent knows the Mortgage Suppliers who will support that type of Mortgage needed or the property type.
In today's times Canadians are carrying a lot of household debt and now more than ever it is important to have a Debt Management Plan. This can only be done by looking at the whole picture. Spending time with a Professional that understands stages in the life cycle and has a vested interest in your success at Debt Management and Home Ownership is the start You may have daycare costs now but in future that expense could be Hockey, Skating, Skiing, or just the high cost of Groceries and Gas on the horizon. A real look at cash flow and expected earnings now and in the future is the key to a Mortgage that can be designed to match all of this and still maximize the principal debt reduction you are seeking. If you start off with the right plan you can become your own debt manager. By experiencing Financial Success, may it be as little as having an extra $1,000.00 a year reduced off your total debt or paying your mortgage off in 10 years you will take control of your Debt Management. The Education your Independent Mortgage Agent or broker can give will allow you to have control over your choices. Yes it is important to have that special person it is also important to empower you. Your success is the Brokers reward as you will be in a position over time to have choices, buy that cottage, buy that Townhouse where your child goes to University or buy that Investment Property. Mortgage Brokers have been around a long time so I think you will be secure in our Industry. Find that Person who Services your Needs and provides clear reasoning as to why they are suggesting one product is better suited for you than another. Only an Independent Mortgage Agent /Broker can give the Broad Spectrum of Products and Options available from all Mortgage Providers.
Did you know that a Mortgage is really a Contract and in Canada all Mortgage Suppliers have to follow the same laws of Protection and Disclosure to the Consumer. This is why Canadian Financial Services Suppliers, Banks, Credit Unions, Mortgage Suppliers Trust Companies did the best in the World weathering the Financial Crisis that the World is still trying to come out of.
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