Is it better to work with a mortgage broker, a mortgage marketer, or a bank representative?
By: Gregory van Duyse | Posted: 21st May 2007
The three distinct types of mortgage consultants are:
• The representative of the local bank branch: This person can only offer loans, not a full strategy, and they have regular banking duties to do. They are paid a salary by the bank that employes them, with the possibility of an annual bonus.
The rep of the local bank branch plays the part of a mortgage consultant, and he is the only one who can submit an application. Things are different recently in the mortgage lending, and now most lenders also work through mortgage brokers or sometimes mortgage marketers - taux hypothecaire. The bank representative will still offer a mortgage loan (in addition to the other financial products the bank offers) but only for the one bank.
• The mortgage marketer: He only offers loans, and specializes in mortgage loans. The bank or lender he works for pays him a commission (taux hypothecaire).
Banks now hire local reps to be able to serve the clients better. A mortgage marketer will go to the client, but he is still only works for the one bank that hired him and pays his commission (based on the amount of the mortgage of the client.)
• The mortgage broker: The broker offers the loan products of many lenders. He specializes in mortgages and receives a commission. This commission is paid by the bank that the loan is placed with.
Mortgage brokers have been dealing with mortgages for more than thirty years but have only become an import component of the mortgage market (taux hypothecaire) recently. A mortgage broker works with many lenders, usually 30 or more and can pick the best one for each client. Today, more than 12,000 mortgage brokers operate in Canada, controlling 27% of the mortgage market.)
(Note: I have tried to be as neutral as possible, but the fact is that I am a mortgage broker - taux hypothecaire. So I want to inform you right away that I believe that it is better to deal with a mortgage broker to finance your home.)
Of this you can be sure: the expertise and integrity of whatever advisor you work with will make a big difference. Of course, there are expert local bank branch representatives, expert mortgage marketers and expert mortgage brokers. And then, there are those who do not fully understand this field.
It is the person in the position that is most important.
You can be sure of one thing, it is the integrity and expertise of your mortgage consultant that will make the most difference. There are very good local bank branch representatives, very good mortgage marketers and very good mortgage brokers. Of course, there are some really bad ones as well. It is the person in the position who will make the most difference in the long run - taux hypothecaire.
Mortgage brokering has become more popular
In 2004, a survey conducted by the CMHC indicated that over 26% of all of the mortgages in Canada were financed through the intermediary of a mortgage broker (taux hypothecaire). But remember, it is the individual you work with, his integrity and expertise that counts.
Gregory is an Accredited Mortgage Professional (AMP) with Mortgage Intelligence. If you need more information about Mortgage broker - courtier hypothecaire, visit: Hypotheque - Mortgage Intelligence
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Tags: integrity, marketer, mortgage broker, lenders, salary, mortgage loan, local bank, loan products, mortgage loans, mortgage brokers, mortgage market, mortgage lending, more than thirty years, mortgage consultant