Why do mortgage consultants work for borrowers and not for lenders? (courtier hypotheque) by Gregory van Duys
If you are going to submit an application for a mortgage, you will feel that you are in a sort of contest with the lending institution, since you are on two different sides of the issue. The lender wants the highest interest rate so he can increase his profits, and you want the lowest interest rate so you can save the most money. A mortgage broker (courtier hypothecaire) will be a middle man in these transactions.
Is the broker working for the lender or the borrower in this case? When you hear that the lender pays the broker's commission, you may assume that the broker is going to work for the interests of the lender. This is not what happens.
The home loan business is a very competitive industry in Canada. Some of the larger mortgage brokers (courtier hypotheque) handle billions of dollars of mortgages each year. LendersLending institutions are interested in working with brokers so they can increase their loan business as much as possible.
Brokers (courtier hypotheque) make roughly the same commission, regardless of which lending institution they work with. This makes brokers fairly independent, as they will get the same fee from any of the lenders. Borrowers are just as happy not to be paying this commission.
This is what this kind of competition adds up to:
-Lenders team up brokers to be exposed to more loan business
-A potential borrower's application can be reviewed by 50 or more lenders, without any added burden on the borrower.
This is the reason the borrower can be considered a client of the broker (courtier hypothécaire). A broker will try to get the best mortgage package for each of his clients.
The broker makes his same fee from any of the lenders he works with, so in order to make more money, he will want to expand his client base by
-creating satisfied customers who will come back to him each time they refinance or buy a new home
-creating a network of potential customers who are the friends, relatives and associates of his satisfied customers
A mortgage consultant (courtier hypothécaire) will earn his livelihood by the fees he is paid. They want to build up a satisfied client base so that their reputation, and therefore the amount of business (and commissions) will get bigger.
All of this means that, even though the lending institution pays the broker's fee, it is the borrower that the broker serves and wants to keep satisfied.
Gregory is an Accredited Mortgage Professional (AMP). To get more information on mortgage brokers - courtier hypothecaire, please visit: Hypothèques - Mortgage loans
Article Source: ArticleSnatch Free Article Directory
If you are going to submit an application for a mortgage, you will feel that you are in a sort of contest with the lending institution, since you are on two different sides of the issue. The lender wants the highest interest rate so he can increase his profits, and you want the lowest interest rate so you can save the most money. A mortgage broker (courtier hypothecaire) will be a middle man in these transactions.
Is the broker working for the lender or the borrower in this case? When you hear that the lender pays the broker's commission, you may assume that the broker is going to work for the interests of the lender. This is not what happens.
The home loan business is a very competitive industry in Canada. Some of the larger mortgage brokers (courtier hypotheque) handle billions of dollars of mortgages each year. LendersLending institutions are interested in working with brokers so they can increase their loan business as much as possible.
Brokers (courtier hypotheque) make roughly the same commission, regardless of which lending institution they work with. This makes brokers fairly independent, as they will get the same fee from any of the lenders. Borrowers are just as happy not to be paying this commission.
This is what this kind of competition adds up to:
-Lenders team up brokers to be exposed to more loan business
-A potential borrower's application can be reviewed by 50 or more lenders, without any added burden on the borrower.
This is the reason the borrower can be considered a client of the broker (courtier hypothécaire). A broker will try to get the best mortgage package for each of his clients.
The broker makes his same fee from any of the lenders he works with, so in order to make more money, he will want to expand his client base by
-creating satisfied customers who will come back to him each time they refinance or buy a new home
-creating a network of potential customers who are the friends, relatives and associates of his satisfied customers
A mortgage consultant (courtier hypothécaire) will earn his livelihood by the fees he is paid. They want to build up a satisfied client base so that their reputation, and therefore the amount of business (and commissions) will get bigger.
All of this means that, even though the lending institution pays the broker's fee, it is the borrower that the broker serves and wants to keep satisfied.
Gregory is an Accredited Mortgage Professional (AMP). To get more information on mortgage brokers - courtier hypothecaire, please visit: Hypothèques - Mortgage loans
Article Source: ArticleSnatch Free Article Directory