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Mortgage Brokers & Professional Advisors in Canada

A mortgage broker helps you find the best mortgage available to you based on your financial situation. In Canada, mortgage brokers are professionals with connections to several lenders, and a number of mortgage solutions not normally available to the public. Canadian mortgage brokers are licensed based on their province. Accredited Mortgage Professional (AMP) is the only national standard for Canada’s mortgage industry and an additional mark of a broker’s credibility.

If you’re looking for a mortgage broker in Canada, many people get referrals from people they know, or look online for a broker of their own. At nesto, we have over 40 brokers throughout Canada who are ready to help out. Simply get in touch, and we’ll connect you with a mortgage broker who can help you find the right solution for you.

Key Takeaways:

  • Mortgage brokers have access to several lenders, and can help you save money by finding the best possible interest rate based on your situation
  • Mortgage brokers are licensed professionals in Canada who help connect borrowers with the best available mortgage products, from a wide range of lenders
  • Mortgage agents are professionals training to be brokers under the supervision of a licensed broker
  • Mortgage brokers are paid for by the lender, so you don’t have to pay them any fees to use their services

How Mortgage Brokers Help Canadians Find Mortgages

Mortgage brokers can help you find a better deal on your mortgage, since they usually have connections to many lenders at once. Similarly, a broker can use their network to find better rates and other mortgage options normally not available to the public. In addition, a mortgage broker will help you find a lender with favorable terms relative to your finances. A good mortgage broker will take the time to understand what your financial situation looks like, and help you find the right lender for your needs.

Benefits of Using a Mortgage Broker

  • No fee for services: Mortgage brokers in Canada are paid by the lender once a borrower signs their mortgage contract. As a prospective home buyer, you don’t pay a mortgage broker a fee.
  • Save time: Mortgage brokers are already connected to several lenders, and will know what options are likely available to you based on your finances. Brokers can help save you time on research, and can provide expert advice to keep you from signing unfavorable mortgage contracts.
  • Get a better rate: Lenders work with some brokers exclusively to help them pre-select their clients. As a result, many brokers have access to solutions and mortgage rates not usually available to retail customers.
  • Peace of mind: A good mortgage broker will act in your best interests and try to get the best possible rate available for you. They’ll also understand the mortgage world better than most people, and can help guide you in the right direction.
  • You could save money: Besides saving you money on your mortgage rate, mortgages also come with a range of up-front fees, from appraisals to application fees. In some instances, your mortgage broker may be able to work with a lender to waive some of these fees, potentially saving you thousands in up-front costs.

Home Loan Options in Canada

Financing a home in Canada can look different depending on your situation. For example, if you already own a home, you might want to save money on your monthly repayments by finding a lower rate when you renew, or by refinancing your mortgage. On the other hand, if you’re a new homebuyer, you may want to look for first-time home buyer incentives in your province and federally.

Buying a Home

Buying a home is a major life event, and involves many steps, lots of information, documents, and liaising with different people. It’s also a significant investment. If you’re looking for a mortgage to buy a home, nesto can help you find the best rate available, and we also lend directly. If you’re looking for more information about the home buying process, check out our guide to buying a home in 2022.

Renewing Your Mortgage

All mortgage contracts have what’s known as a term. Usually, a term is 5 years long. When your mortgage’s term matures, it’s time to renew your mortgage. The renewal process gives you an opportunity to reflect on your finances, your mortgage needs, and current interest rates. To learn more, explore our detailed guide on How to Renew Your Mortgage

Refinancing Your Mortgage

Refinancing is different from mortgage renewal. Renewal is an ongoing process that occurs when a mortgage’s term expires. Many people typically renew their mortgage with the same lender after 5 years on similar terms, and without too much hassle. Refinancing, on the other hand, involves paying off your current mortgage by breaking it early and using another mortgage loan to cover it. People can refinance to take advantage of a lower interest rate, or access equity for things like debt consolidation and renovations. Depending on your current mortgage, refinancing your mortgage will probably incur a prepayment penalty for breaking your term early.

First-Time Home Buyer Plans

First-time home buyers in Canada are in a tricky spot right now, with home prices nationwide hitting record highs in the last couple of years. However, there are a number of federal, provincial, and even some municipal first-time home buyer programs available to help you save money when buying your first home. These include land tax rebates, affordable loans for down payments, and other incentives. 

Canadian Broker Associations and Licensing

The Canadian mortgage broker landscape can be a little confusing from a licensing perspective, as every province has their own regulations to become an accredited mortgage broker. On top of this, Mortgage Professionals Canada (French: Professionnels Hypothécaires du Canada) is the national body representing Canada’s mortgage industry, and provides the Accredited Mortgage Professional (AMP) designation in Canada (French: CHA) to qualifying mortgage professionals. It is also possible to work with a Mortgage Agent, who is an individual currently working with a mortgage brokerage under the supervision of a licensed broker towards their official accreditation.

The qualification requirements for mortgage brokers to become an Accredited Mortgage Professional of Canada includes the following:

  • They must be employed by a Mortgage Professionals Canada member company.
  • They must be licensed or registered as a mortgage broker, agent, submortgage broker, associate or salesperson in their province of operation AND carry Errors and Omissions (E&O) insurance coverage.
  • They must successfully complete the AMPC exam administered by the University of British Columbia, Sauder School of Business, and pass the final exam; achieving a minimum grade of 75%.

Frequently Asked Questions (FAQ)

Here are some of the most commonly asked questions on mortgage brokers and professional mortgage advisors in Canada.

Is it worth going through a mortgage broker?

Many Canadians go through brokers because they’re free to use and provide a whole range of benefits. Besides helping you find the best mortgage possible for your financial situation, mortgage brokers will also help you find better rates and have access to more lenders than the general public. If you want to save money and time on your mortgage, a broker is generally considered a good choice to make.

Is it better to use a bank or mortgage broker?

While many Canadians go directly to lenders, the use of mortgage brokers is becoming more popular recently. Particularly among first-time buyers, who are already trying to navigate a complex and overwhelming housing market, using a mortgage broker provides further peace of mind that they are getting the best rate possible. Mortgage brokers have access to multiple lenders, including large banks and alternative lenders, so can provide a more broad view of the mortgage market.

How much do most mortgage brokers charge?

Mortgage broker commissions vary, and are always paid by the lender. A reasonable range for a broker’s commission is between 0.5% to 1.25% of your full mortgage amount. The exact percentage will also depend on the term and type of your mortgage.

Do you have to pay mortgage brokers?

No. Mortgage brokers are paid on the back end by the lender. Lenders are incentivised to find borrowers who will pay back their loan on time and in full, so it makes sense for them to work with a broker to find good candidates. As such, as a borrower you won’t pay for a mortgage broker’s services in Canada.

Final Thoughts

If you’re thinking of buying a home and want to find the best rate possible, a mortgage broker could be the right way to go. By partnering with a trusted advisor who can offer wide mortgage expertise and a range of different lenders, you could find yourself saving thousands over the lifetime of your loan. At nesto, we have 40+ mortgage brokers across the country ready to help. Simply get in touch today, and we’ll connect you to one of our brokers.

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