What’s best to work with, with a mortgage broker, a mortgage marketer, or a bank representative?

There are three kinds of mortgage advisors:

• The representative of the local bank branch: They only offer loans, and have a number of other duties besides mortgage loans, are salaried, and perhaps receive an annual bonus.

Traditionally, it is the local bank branch representative who acts as the mortgage consultant. He is the only one who has the right to make a mortgage application for clients - taux hypothecaire. The world of mortgage financing has changed and almost all lenders offer their mortgage products through mortgage brokers and, in some cases, through mortgage marketers. The bank representatives still offer mortgage loans (as well as other financial products) but only for the bank they work for.)

• The mortgage marketer: He only offers loans, and his specialty is mortgage loans. The bank or lender he works for pays him a commission (taux hypothecaire).

Banks now hire local reps in order to serve the clients better. A mortgage marketer will visit the client, but he is still only works for the one bank that hired him and is responsible for his commission (based on the amount of the mortgage of the borrower.)

• The mortgage broker: He offers the loan products of many lenders, specializes in mortgage loans and works only for commission (remunerated by the lender).

Mortgage brokers have been around for thirty years, but have only become a major factor in the home loan market over the last few years (taux hypothecaire). Mortgage brokers work directly with many lenders (more than 30) so that they can offer the best solution to their clients. Nowadays, there are more than 12,000 mortgage brokers in Canada who represent 27% of the market.)

(Note: I have tried to be as neutral as I can, but the fact is that I am a mortgage broker - taux hypothecaire. Therefore I want to inform you right away that I believe that it is better to deal with a mortgage broker to finance your property.)

You can be sure of one thing, it is the integrity and expertise of your mortgage consultant that will make the most difference. There are very good local bank branch representatives, very good mortgage marketers and very good mortgage brokers. Of course, there are some really bad ones as well. It is the person in the position who will make the most impact in the long run.

Of this you can be sure: the expertise and integrity of whatever consultant - taux hypothecaire you work with will make a big difference. Of course, there are expert local bank branch representatives, expert mortgage marketers and expert mortgage brokers. And then, there are those who do not fully understand this field.

It is the person in the position that is most important.

Mortgage brokering has become more popular

In 2004, a survey conducted by the CMHC indicated that over 26% of all of the mortgages in Canada were financed through the intermediary of a mortgage broker (taux hypothecaire). But remember, it is the individual you work with, his integrity and expertise that counts.

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