Photo credit: Maurice Nantel
The mortgage broker has an important role in a real estate transaction.
Like the real estate broker, the mortgage broker holds a permit from the OACIQ and has the same code of ethics.
But his role is different. While the real estate broker helps his clients buy or sell properties, the mortgage broker advises future owners to obtain the best financing and to direct them to the financial institution that best suits their needs according to their profile.
According to the CMHC (Canada Mortgage and Housing Corporation), 48% of new home buyers used the services of a mortgage broker in 2014.
Buyers are aware of the importance of a mortgage broker.
According to Nathalie Clément, director of Via Capitale du Mont-Royal, clients are often reluctant to reveal the details of their financial situation with their real estate broker. It can be different with a mortgage broker. It’s their job to take a very close look at their client’s financial situation, look at all their assets and liabilities and review all their debts in order to find the ideal solution and the best financial institution to finance the purchase of their property.
In the same CMHC survey, 50% of clients who dealt with a mortgage broker changed financial institutions to grant the mortgage loan. In other words, they did not use their usual bank with which they usually do business. They were able to follow the advice of their mortgage broker to look for a better interest rate or a more interesting program at another bank.
Clients who have used a broker in the past are more likely to use their broker again for a new transaction.
This is because a relationship of trust is established between the broker and the client.
The client may use the service of a mortgage broker again, to expand their home, move or buy another property.
There are even clients who have enjoyed acquiring property and have made real estate investments. In this situation, your mortgage broker, who knows your financial situation very well, is in the best position to advise you, help you refinance and arrange a new mortgage.
The involvement of a mortgage broker is valuable. They will accompany you throughout the real estate transaction and help you obtain the best possible financing for the purchase of your property.
For more information, contact Via Capitale du Mont-Royal. Our real estate brokers will be pleased to advise and guide you.