Mortgage Brokers & Professional Advisors in Edmonton
Looking for a mortgage broker to help you find the best rate possible in Edmonton’s booming property market? This post breaks down how to find a mortgage broker in Edmonton, what they cost, and how they can help you with your mortgage.
Key Takeaways:
- Mortgage brokers in Edmonton are licensed by the Real Estate Council of Alberta (RECA).
- Mortgage brokers are professionals who help people find the right mortgage solutions and best rates available through their network and lender connections.
- Residential mortgage brokers in Edmonton are paid for by the lender; you don’t have to pay a fee to use their services.
- At nesto, we have 40+ mortgage brokers in Canada to help you find the best mortgage solution to suit your goals.
Finding a Mortgage Broker in Edmonton
If you’re looking for a mortgage broker in Edmonton, you’re in the right place. We have 40+ brokers waiting to help you find the best mortgage rates in Edmonton in just a few clicks. Mortgage brokers in Edmonton are licensed through the Real Estate Council of Alberta, or RECA provided they pass the education requirements and meet all other eligibility requirements. Many people find their broker through a family or friend’s referral. At nesto, we can instantly connect you to a qualified broker near Edmonton. Just send us an enquiry to get started, and one of our team will be in touch right away.
How Mortgage Brokers Help Canadians Find Mortgages
Mortgage brokers usually have a large network of connections to lenders and a wealth of expertise in mortgage solutions for all types of financial situations. Mortgage brokers in Canada are incentivized to find quality candidates for lenders since they’re paid for by the lender once someone has been approved for a mortgage.
On top of this, all mortgage brokers in Edmonton are required to undergo the same initial educational training and licensing requirements, which generally arm them with a wealth of knowledge about the mortgage market. Finally, mortgage brokers in Edmonton may be able to share some mortgage solutions not ordinarily shown to the public due to their relationships with lenders.
Benefits of Using a Mortgage Broker
Mortgage brokers can help Edmontonians in a number of ways, from saving money to taking some of the stress out of finding the right mortgage. Here are a few of the benefits of using a mortgage broker if you’re buying a home in Edmonton.
- 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 unfavourable 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 Edmonton
There are a number of ways to buy a home in Alberta, and it will depend on your situation. Here’s a breakdown of ways to fund your next home purchase in the province.
Buying a Home
Buying Edmonton housing right now can be more costly than before the pandemic, with house prices here and around Canada rising steadily for the last two years. However, there are signs of the market slowing down, and the city remains one of the most affordable major markets to buy a home in Canada, comparatively speaking. If you’re planning to move to Edmonton, nesto can help you find the best rate available, and we also lend directly. If you need more information about the homebuying process in general, 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
If you’re buying a home in Edmonton, be sure to look into all the federal, provincial, and municipal first-time buyer incentives and plans available to you, as these can quickly add up to help you save hundreds, if not thousands, of dollars.
- At the federal level, eligible homebuyers can take advantage of the First-Time Home Buyer’s Tax Credit and the Home Buyer’s Plan.
- Provincially, Alberta unfortunately doesn’t have as many options as other provinces. While there used to be some available assistance for low-income homebuyers through projects like the Public Essential and Key Workforce (PEAK) initiative, the program has since stopped accepting new applicants.
- The City of Edmonton has teamed up with banks and builders to turn vacant surplus school building sites into townhomes at market prices, through the First Place Program. For eligible applicants, the First Place Program offers a 5-year deferral on the land portion of the mortgage, making them more accessible for new first-time homebuyers.
Mortgage Brokers Association of Alberta
Mortgage brokers in Alberta can be members of the Alberta Mortgage Association (AMBA), who provide education, events, and a community for mortgage brokers in the province. The Alberta Mortgage Brokers Association has been representing the interests of Alberta mortgage brokers since 1975. Technically, all mortgage brokers within the province fall under the purview of the Real Estate Council of Alberta (RECA). Whereas RECA ensures mortgage brokers in Alberta are properly licensed and following all appropriate guidelines, AMBA provides training, guidance, and support for its members.
Licensing Mortgage Brokers in Alberta
In Edmonton, mortgage brokers are licensed by the Real Estate Council of Alberta, provided they pass the education requirements and meet all other eligibility requirements. To get a mortgage broker license in Edmonton, candidates must first complete the MAP (Mortgage Associates Program), which consists of two courses offered by RECA (The Fundamentals of Mortgage Brokerage) and AMBA (The Practice of Mortgage Brokerage), before passing a final exam. Applicants must also meet all the other eligibility requirements for an Alberta mortgage broker license. To check a mortgage broker’s license and background in Edmonton, use RECA’s licensee search tool.
Frequently Asked Questions (FAQ)
Here are some of the most frequently asked questions about finding a mortgage broker in Edmonton this year.
Is it worth going through a mortgage broker in Edmonton?
Getting a mortgage broker in Edmonton could help you find a lower mortgage rate and save time doing so. All mortgage brokers in Alberta are also trained and licensed through the same courses and eligibility framework, so you know you’ll be getting a professional. Finally, mortgage brokers don’t charge a fee for residential mortgages since the lender pays for them.
Is it better to use a bank or mortgage broker?
There are a number of differences between a bank and a mortgage broker. While banks typically get the last say on whether your mortgage application is approved, brokers help homebuyers find mortgages through multiple potential lenders. Mortgage brokers can also help prospective homebuyers in Edmonton to cast a wider net since they have relationships with many different lenders. A mortgage broker cannot guarantee your approval for a loan, but they can help advise and promote several solutions to fit your situation.
How much do most mortgage brokers charge?
The lender always pays mortgage brokers in Edmonton. A reasonable range for a broker’s commission in Alberta is around 0.5% to 1.25% of your final 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 in Edmonton are paid on the backend by the lender. Lenders are incentivised to find borrowers who will pay back their loans 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.
How nesto works
At nesto, all of our commission-free mortgage experts hold concurrent professional designations from one or more provinces. Our clients will receive the best advice and care when they speak with specialists that exceed the industry status quo.
Unlike the industry norm, our agents are not commissioned but salaried employees. This means you’ll get free, unbiased advice on the most suitable mortgage solution for your unique needs. Our advisors are measured on the satisfaction and quality of advice they provide to their clients.
nesto is working hard to change how the mortgage industry functions. We start with honest and transparent advice, followed by our best rates upfront. We can offer you these low rates using the fintech industry’s best-in-class and safest technology to provide a 100% digital online experience and process to reduce overhead costs.
By working remotely across Canada, all our mortgage experts and staff spend less time commuting to work and more time with their friends and family. This makes for more dedicated employees and contributes to our success with happy and satisfied clients.
nesto is on a mission to offer a positive, empowering and transparent property financing experience, simplified from start to finish.
Reach out to our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.
Regulatory Titles
In Ontario (FSRA), Mortgage Brokers and Agents both serve as the middle person between borrowers and lenders, helping clients find the most suitable mortgage options for their financing situation. A Mortgage Agent works under the supervision of a Mortgage Broker and assists in the mortgage application process. A Mortgage Broker may also be responsible for compliance requirements for their brokerage or a team.
The provinces of Quebec (AMF) and Newfoundland (Digital & Government Service NL) both exclusively utilize the designation of Mortgage Broker as a licensing designation.
British Columbia (BCFSA) has two distinct roles within the mortgage industry: the Submortgage Broker and the Mortgage Broker. These positions have specific responsibilities and functions that contribute to the overall process of securing mortgages for clients. The Submortgage Broker works under the supervision of a licensed Mortgage Broker and assists in various tasks, such as gathering client information, completing paperwork, and liaising with lenders. The Mortgage Broker oversees the entire mortgage application process, including assessing client needs, finding suitable mortgage options, negotiating terms, and ensuring compliance with regulations.
In Alberta (RECA) and New Brunswick (FCNB), the distinction between a Mortgage Associate and a Mortgage Broker lies in their roles and responsibilities within the mortgage industry. A Mortgage Associate typically works under the supervision of a Mortgage Broker and assists in the mortgage application process gathering necessary documentation, and providing support to clients. A Mortgage Broker is licensed to independently negotiate and arrange mortgage loans on behalf of clients, offering a more comprehensive range of mortgage options and expertise in the field.
In Saskatchewan (FCAA) and Nova Scotia (Government of Nova Scotia, Business Licensing), there are distinct roles for both Associate Mortgage Brokers and Mortgage Brokers. The critical difference lies in their level of experience and licensing requirements. Associate Mortgage Brokers work under the supervision of a licensed Mortgage Broker and are in the early stages of their career. They may assist with gathering client information and preparing mortgage applications. Mortgage Brokers have obtained the necessary qualifications and licences to operate independently and provide mortgage services directly to clients. They have the authority to negotiate mortgage terms, advise clients, and facilitate the mortgage process from start to finish.
In Manitoba (MSC), a Salesperson is primarily responsible for promoting and selling products or services, while an Authorised Official holds the authority to make legally binding decisions on behalf of the organization. These roles have different levels of authority and expertise, with the Salesperson focusing on sales and the Authorised Official having broader decision-making powers and acting as the liaison between the brokerage and the regulator.
For a complete list of licensing terms in Canada, please see the Mortgage Broker Regulators’ Council of Canada (MBRCC) published list.
Ready to get started?
In just a few clicks, you can see our current rates. Then apply for your mortgage online in minutes!
