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Post Categories First Time Home Buyers, Mortgage Renewals, Mortgage Tips

Do You Pay a Mortgage Broker in Canada?

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One of the most asked questions I receive is not actually about mortgages at all – rather it’s about payment! In this article, I’m going to talk about how you pay a mortgage broker and how it’s different from working with a bank. 

Do you pay a Canadian mortgage broker?

The answer is quite simple… you don’t pay a mortgage broker! A lot of people think that if they work with a mortgage broker, they have to pay for our time and efforts out of their own pocket. Sometimes this assumption will push them to go to the bank instead of giving me a call all together. 

But I want to share with you that you don’t pay me and it doesn’t cost you a cent to potentially get a better interest rate than you’d get offered from your bank. 

Who pays a mortgage broker?

Since you won’t be paying a mortgage broker, you may be curious to know how I get paid. The bank that your mortgage loan comes out of pays the mortgage broker (me) for bringing them the client (you). There are no fees that come from you and it isn’t taken out of your mortgage either. 

The payment to the mortgage broker is completely separate from your mortgage. 

Why should I work with a broker and not a bank?

When you work with a broker, like myself, you’re working with a broker. I have a license and renew it every two years. In addition to being licenced, a broker has access to several of the main financial institutions plus many other broker specific lenders. This means that I am able to shop around the different banks to find the best rate and product possible for you. 

If you were to use a mortgage specialist at a bank, they only have access to their institution’s rates and are not able to shop around for the best rates coming from other banks. They are also not licensed like I am.

Smiling headshot of Matthew Jackson, Mortgage Broker of Mortgage Okanagan, wearing a dark blue shit with grey dots

Now, it is not always one size fits all for working with a broker like myself. I do believe there could be certain situations where it makes sense to work with your long-term bank. 

I can tell you whether or not you’re in that situation. When you reach out to me to discuss your situation and hopeful plans, I can see what rates I can get for you. If it makes sense to work with your bank, I will be able to share that information with you. If it doesn’t make sense, I’ll work with you to get the best mortgage rate available at the time for you. 

Brokers also have access to different mortgage programs available compared to banks. This specialized program could be the answer for your situation to have you approved. 

Getting a private mortgage and what that means for payment.

There is one caveat to this, if you are getting a private mortgage, through a private lender, there will be a fee for accessing those lenders. If getting a mortgage through a private lender is the right option for you, during our discussions, I will let you know what the fee would be for this type of mortgage loan.

What about renewal letters?

It’s the same situation when it comes to renewal letters with your current lender. If your mortgage is up for renewal, you will get a letter in the mail with a new interest rate and renewal date. Many people just accept this without a second thought and go on with their day. 

But, did you know that if you work with a broker, I am able to review and shop around to see if there are any better interest rates available?

If your mortgage is coming up for renewal this year, please give me a call asap. We can see what your current lender is offering you and whether or not there’s a better option out there for you.

I’m here to help you.

Now that you understand that you don’t pay a mortgage broker, are you interested in working with me on your next home purchase?

I understand that it can be easier to just go to the bank that you’re comfortable with and just go through the process that way. But, if you’re willing to give me a call, I may be able to help your situation immensely while saving you some money on your mortgage. 

If you have any questions, give me a call! If your mind’s made up and you’re ready to work with me for your next mortgage, fill out my pre-approval form and I’ll be in touch soon.

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