Should you 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: The reps 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 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 certain cases, through mortgage marketers. The bank representatives continue to 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 to be able to serve the clients better. A mortgage marketer will go to the client, but he is still only works for the one bank that hired him and pays his commission (based on the amount of the mortgage of the borrower.)

• The mortgage broker: The broker can offer the loan products of many lenders. He specializes in mortgages and works for commission, which he receives from whatever lender takes the loan.

Mortgage brokers have been around for a while (thirty years) but have only recently become an important factor in the home loan market. A mortgage broker will work with many lenders (thirty or more) and has the flexibility to deal with any one of them to find the best deal for a client - taux hypothecaire. There are more than 12,000 mortgage brokers in Canada, and they represent 27% of the total home loan market).

(NB: I try 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 individual to deal with for a mortgage - taux hypothecaire. Otherwise, I would have chosen 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.

No matter what, 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 very bad ones as well. It is the individual in the position who will make the most impact in the long run - taux hypothecaire.

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.

Gregory is an Accredited Mortgage Professional (AMP). To get more information on mortgage rates - taux hypothèque, please visit: Mortgages - hypothèques