Mortgage financing is a loan used to finance real estate, where the property itself serves as collateral or security against the loan. The borrower (mortgagor) repays the loan in instalments to the lender (mortgagee) that consist of principal & interest payments over a set period, usually 15-30 years, with the standard amortization being 25 years.

In Canada, mortgages are offered by various lenders, including but not limited to the following Banks, Credit Unions, Trust Companies, Mortgage Companies, Mortgage Investment Corporations and Private Lenders.

While a bank or specific lender agent only offers the products from their particular institution, licensed mortgage professionals send millions of dollars in mortgage business each year to Canada’s largest banks, credit unions, trust companies, and financial institutions; offering their clients more choice, and access to hundreds of mortgage products!

There are many benefits to using a mortgage broker to work on your behalf to shop around your mortgage needs, instead of doing the work yourself or working with a lender agent directly.

Access to Multiple Lenders: Brokers work with various lenders, increasing your chances of finding the best rate and terms.

Time Savings: They handle the research, applications, and negotiations for you.

Tailored Solutions: Brokers match loans to your financial situation, including complex cases like low credit, or non standard income.

Expertise: They specialize in mortgages, understand the market and can explain options clearly.

Negotiation Power: Brokers often secure better rates than you’d get directly, especially if associated with the largest national brokerage offering you greater discount due to high volumes.

Convenience: One point of contact instead of managing multiple lender conversations.

Free Service:  Lenders have lending portfolios, and are willing to pay a small referring fee for loan originators. Your broker will place your mortgage with the lender that has the best deal and lowest rate that match what you are looking for. That is how your mortgage broker is able to provide you with this valuable service at no cost to you.  Only with the most challenging residential mortgage where alternative lending solutions are the only options available, or with commercial mortgages, will there be a brokerage fee.  In these cases your broker will be able to do for you what standard lenders and agents cannot.