How Toronto Mortgage Agent could save from Financial Crisis?
A mortgage agent serves as a mediator who brokers mortgage loans on behalf of businesses or individuals. Banks and other lending organizations traditionally sell their own products. However, as markets for mortgages have turned more competitive, the role of these agents has become more popular.
Why Consult a Toronto Mortgage Agent?
Their duty is to find a direct lender or banks that are willing to provide the specific loan an individual is seeking. The lenders pay the mortgage agents in Canada, and they do not charge fees for good credit applications.
Many mortgage agents assure compliance with finance and banking laws within the jurisdiction of the consumer. The extent of this regulation depends on the jurisdiction.
Some advantages of using an agent are:
- All negotiations are handled by the mortgage agent
- Access to one’s mortgage agent’s in-depth industry knowledge
- Greater access to mortgage products, rates and lenders
- Access to compare mortgage rates without having one’s credit report pulled numerous times
- Greater flexibility when finding a time to meet with one’s agent in-person as they usually work for extended hours
- It is usually a free service as they are paid by the lender that provides one’s mortgage
Mortgage Brokerage in Canada
The provincial governments determine the laws that govern mortgage brokerage in Canada. Most provinces consider it mandatory for mortgage brokerage companies to carry a provincial license.
- Ontario: The mortgage brokers here have license from the Financial Services Commission of Ontario (FSCO), which is an agency of the Ministry of Finance. An individual has to meet specific licensing requirements, including passing an approved course, to become licensed. This course is a combined effort of the Real Estate and Mortgage Institute of Canada Inc. (REMIC) and the Association of Accredited Mortgage Professionals (CAAMP).
- Nova Scotia: Here, mortgage agents get license by the Service Nova Scotia, in addition to their regulation under the Mortgage Brokers and Lenders Registration Act. Numerous brokers are members of the Mortgage Brokers Association of Atlantic Canada, in Nova Scotia.
- British Columbia: Here, the mortgage brokers get license by the Financial Institutions Commission (FICOM).
In most of the developed mortgage markets today, (especially in Canada, the United Kingdom, the United States and Australia) mortgage agents are the largest sellers of mortgage products for lending institutions. In Canada, agencies like Canada Guaranty, Canada Mortgage or Housing Corporation are responsible to approve the insurance of high ratio loans.