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Mortgage News 2022

Do you submit my application to the lender that pays you the most?

1/15/2018

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Many borrowers are not aware of the different compensation models for both mortgage brokers and banks. Further, they are usually unaware that different lenders pay brokers different amounts of commission. Why is this important?

Firstly, any consumer needs ensure that they are in fact, getting the best deal. If a broker has a few possible financial institutions they can submit an application to, then it's important they don't submit to a lender paying them the most but instead, one offering the best deal to the borrower. A borrower's life and financial goals should not be meddled with - this isn't a casino!

When it comes to interest rates, they may seem good to the borrower but are they the best? Another question that should be asked: are the terms of the mortgage the best? Is there flexibility within the mortgage contract? Are there any lenders offering something better? And if so, what are their terms?

Because most people are not aware of how mortgage brokers get paid to begin with, they are surprised to find out that there are indeed different amounts of commission being offered to brokers. There are over 20,000 mortgage brokers across Canada, so it's important that borrowers choose to work with those not motivated by "how much compensation" but rather, "is it the best deal for the borrower?" 
​
This isn't to portray bank representatives as angels, either. Most bank specialists are also incentivized by bonuses, raises and in most cases, their employment. This means they are graded on how much volume they do or in other words, how many products they sell. Therefore, borrowers also want to ensure they are not put into a mortgage product just because the person at the bank needed to reach their monthly quota.
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Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

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Email: scolucci@sherwoodmortgagegroup.com
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  • Home
  • WHY USE SARAH FOR YOUR NEXT MORTGAGE
  • APPLY ONLINE
  • PRODUCTS
    • Free House Value Tracker Report
    • CASH-BACK MORTGAGE
    • BRIDGE FUNDS
    • REVERSE MORTGAGES
    • SELF-EMPLOYED MORTGAGES
    • FIRST-TIME HOME BUYER PRE-APPROVALS >
      • FIRST-TIME HOME BUYER TAX CREDIT
    • MORTGAGE REFINANCE >
      • Prepayment penalties
    • SPOUSAL BUYOUTS
    • INVESTMENT PROPERTIES AND RENTALS
    • BRUISED CREDIT
    • PRE-APPROVALS
    • NEWCOMERS
    • DEBT CONSOLIDATION
    • HOME EQUITY LINE OF CREDIT
    • PURCHASE PLUS IMPROVEMENT PROGRAM
    • WHY INVEST IN REAL ESTATE
    • MORTGAGE RENEWALS >
      • New Mortgage Rules and Mortgage Renewals
    • SECOND MORTGAGE LOANS
    • LESS THAN 20% PROPERTIES
    • DOWN PAYMENT
  • CONTACT ME
  • PRIME RATE CANADA
  • CLOSING COSTS
  • DOCUMENTS REQUIRED FOR MORTGAGE FINANCING
  • MORTGAGE DICTIONARY
  • MORTGAGE NEWS
  • GOVERNMENT MORTGAGE RULES
  • MORTGAGE TIPS
  • HOUSE HUNTING CHECKLIST
  • APPRAISALS
  • FIXED OR VARIABLE RATE?