Is it better to work with a mortgage broker, a mortgage marketer, or a bank representative?

There are three types of mortgage consultants:

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

Traditionally, it is the local bank branch representative who acts as the home loan consultant. He is the only one who is able to make a mortgage application for borrowers - 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 continue to offer mortgage loans (as well as other financial products) but only for the bank they represent.)

• The mortgage marketer: He only deals with loans, with a specialty in mortgage loans. He is compensated by the bank that he originates the loans for.

A recent trend is for banks to hire local reps in order to serve the clientele best. A mortgage marketer (taux hypothecaire) will go to the client, but he works for the bank that hires him. He is paid a commission on the amount of the loans he originates.

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

Mortgage brokers have existed for thirty years, but have only become a major factor in the mortgage 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. Today, there are more than 12,000 mortgage brokers in Canada who represent 27% of the market.)

(NB: I would like to be neutral on this issue, but since I am a mortgage broker, I want to let you know that I believe that a mortgage broker is the best person to deal with for a mortgage - taux hypothecaire. Otherwise, I would have gone into one of the other fields!

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

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

One thing is certain. It is the expertise and integrity of the advisor that will make the difference - taux hypothecaire. There are excellent local bank branch representatives, excellent mortgage marketers and excellent mortgage brokers. However, the opposite is also true.

The service of the person with whom you will work is most critical.

Mortgage brokering has become more popular

A survey by the CMHC showed that in 2004 more than 26% of home loans were financed with the help of a mortgage broker (taux hypothecaire). No matter what, it is the individual, his integrity and his expertise that will make the difference.

Gregory is an Accredited Mortgage Professional (AMP) with Mortgage Intelligence. If you need more information about Mortgage broker - courtier hypothecaire, visit: Hypotheque - Mortgage Intelligence