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The Facts about the mortgage Market in Canada for Prospective Homeowners

The banks train their employees in such a way that they are able to convince the people and attract them towards their banks. But, that is not the case with the Mortgage brokers. At the end of 2008, the banks in Canada had more than 62 % of the residential mortgage Debt. The reason for this improvement is that the banks were able to bag all the big fishes such as the companies, institutions and many others who were ready to pay more money. Another reason was the trust that the banks could provide to the customers.

The banks were not allowed to give mortgage loans till 1954, but as time passed, they were allowed to do so. Even after all this the conventional mortgages could only be below 10%, which also later got increased to 20%. The growth was only because of the mortgage brokers who played a prominent role. A survey that was conducted in 2009 revealed that all the transaction that was made from June 2008 to June 2009 had a large hand of mortgage brokers. The brokers are playing a huge role in increasing the mortgage market. According to the statistics, more people tend to go with the first interest rates that the banks provide. When people go this way, the brokers are losing their value. It is the brokers who are running around for their clients in order to find the best rates.

Most of the first-time buyers are turning out to become a mortgage broker. The number is slowly increasing. The brokers are undergoing training sessions in order to pull customers to their side. They educate themselves on the recent rates and always carry a note in order to explain it to their clients. Let’s see why it is better to go with a mortgage broker,

·    He would have known all the rates in the business and so he will certainly provide you the best rates. Now you have some options in front of you to choose from. You cannot expect this from a bank.

·    He always advises you to go with the best one if you choose a wrong one.

·    He can crash at your place anytime at your convenience and can show you the rates at your leisure.

·    They can speak to the lenders for you. They have the power to do that. Well, you can't just walk into a bank or any other firm and ask for a flexible plan. But, your broker can do that and he will certainly do that for you.

·    He would certainly have some experience, and in any field experience has some value. He can give you some valuable tips while going for a loan.

Always a broker is the best idea. You can even go to a Mortgage agent. But, he won't be able to help you in a way the broker helps you. Let’s see some of the qualification a mortgage broker should possess,

·    He should have at least 2 years of experience.

·    He should pass in all his mortgage test and courses.

·    They work on their own and fetch all the information from the lenders.

·    Administration of the mortgage is not done by them.

·    The brokerage is not got from the clients.

Now let’s see what a mortgage agent is,

·    A mortgage agent is one who carries all the activities under the supervision of a qualified mortgage broker.

·    The agent is allowed to work only for one mortgage brokerage.

·    The License will not be easily provided to the mortgage agent, and in order to get one he has to pass through mortgage exams.

·    The license should be applied within two years of completing the education.

·    The courses can be different for each provider, but the content will be almost the same.

Here is what it takes to become a mortgage broker,

·    One has to take the mortgage education program.

·    After that, the mortgage agent license is issued on his name.

·    Then the courses are to be completed successfully.

·    Then the license for the mortgage broker should be applied within two years of successfully completing the syllabus.

·    Within these years, he should have worked as a mortgage agent under a mortgage broker.

Now, you would have understood the value of a mortgage broker than a mortgage agent. The broker would have the experience and so he would be able to provide the right information that is required for his clients. Most people think that the bank would help them in a big way by giving them the best rates, but the banks do not do that. They just want people to invest in their banks. But, brokers are not like that. They want their clients to be satisfied and happy. Their service is also free. The lender pays the broker with the size of the mortgage. A broker does not have a particular work time. He can get into business any time. Mortgage brokers are the best idea to get a better interest rates for our loans. 

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