I still get asked this all the time! The questions go something like this…. “So do you work for a bank?” or “How do you get paid?” Quite often, after I explain to someone what exactly it is we do, they are thrilled that such a service exists. Because, let’s face it… mortgage time is usually not ones favorite activity (except for people like us!).

A Mortgage Broker* is an independent financial advisor that specializes in the mortgage industry. Our mission is to facilitate a mortgage between a borrower and a lender. Mortgage Brokers are experts in every available choice of financing for your home, investment property, or vacation property. We adhere to a strict Code of Ethics put forth by the Alberta Mortgage Brokers Association and the Canadian Association of Accredited Mortgage Professionals.

There are over 50 mortgage lenders in the marketplace right now – each offering different mortgage products and interest rates. A Mortgage Broker has access to hundreds of financing products and finds the best-fit for your particular circumstance. We have the training, expertise, and skills to evaluate your personal situation and find you a compatible lender. If you are unable to proceed with financing through a bank, a first-rate mortgage broker should then be able to find you ‘private’ funds, if need be.

If you were to apply for your mortgage at a bank branch, the interest rate offered will most likely be the bank posted rate. This is considered the banks offered rate, and depending on how great of a negotiator you are and what business you commit to giving them (credit cards, savings accounts, etc.) – you may or may not receive a discount from the posted rate. Plus, there are many instances where a bank branch may not even be able to grant a mortgage; if you are self-employed, unable to prove your income, or needing a second/third mortgage, as examples.

A Mortgage Broker deals in a completely separate network and set of rates. We trade in mortgages in the Banks Broker Network or Banks Broker Channel and our offered rates are called the Discounted Rate. This is a separate entity from most bank branches and our rates are fully-discounted – right from the start. Although there are qualifying factors to getting the fully-discounted rate (such as your credit, your choice of property, etc), many clients do qualify for the best rate. In addition, for those clients who may not meet the traditional banks qualifying criteria, may effortlessly find help with a Mortgage Broker. Several lenders we have access to deal in the non-conforming market, or those who don’t fit the traditional mold.

Of course, it is not always about the ‘best rate’. A Mortgage Broker will help you make your mortgage process as seamless and hassle-free as possible. A Mortgage Broker can also help with mortgage budgeting, debt consolidation, and even the purchase of rental, vacation, or investment properties.

And, in almost all cases, a Mortgage Broker’s work is without charge to the borrower! We are paid by way of a commission from the lender.

* A Mortgage Broker (in Alberta) is a mortgage representative that has logged enough hours via training and work experience that he or she may earn a senior licensing position and title. Mortgage Broker may also be known as a Consultant, Associate, Professional, Specialist, etc. ‘Broker’ is used as an all encompassing title for the purpose of this article only.