Posted: 10 Jun '17

Who Pays A Mortgage Broker Do They Charge A Fee

On narrowing down the search for your dream home, the next step is to find the best mortgage to materialize this dream. However, most people do not have the time or savvy to find a mortgage that works for them, and they don’t know what they don’t know about all the other terms that can make a great or terrible mortgage. An excellent way to get informed and make an educated decision is by using a mortgage broker. To get you started, here is some preliminary information about engaging a mortgage broker.

What Do Mortgage Brokers Do For You?

In simplified terms, a mortgage broker is a middleman between you and potential lenders. Mortgage brokers are regulated and licensed financial professionals who work with various lenders offering different loan options. At Dominion Lending Centres, our job is to find you the best mortgage lender offering the lowest rates and most convenient terms that best fit your needs. We do all the hard work for you which comprises of: gathering documents, verifying your income, pulling your credit history and then using this information get your mortgage approved.

Mortgage Broker Fees and Payments

Most of the time, a mortgage broker is paid a commission by the bank that funds the loan, so there is no charge to the borrower, and this charge is not added to the mortgage, either. In special circumstances, a broker may need to be paid a brokerage fee by the borrower for applications that require complex engagements and more hours; i.e. for non-prime clients.

With some lenders, mortgage brokers can choose a trailer fee model where they receive a lower commission up front, but then earn a trailer fee at renewal time. Do not worry though as the law requires mortgage brokers to disclose all fees before making a binding mortgage agreement, and whether the broker is on an upfront model, or trailer fee model, you don’t have to pay it, and you get to enjoy the low rate and great mortgage terms that your broker found for you.

While it may appear cheaper to shop for lenders yourself, it takes considerable time, effort and savvy to get a good deal. Contact Dominion Lending Centres - our Mortgage Brokers are in touch with the changing mortgage market and can land you the best mortgage deal.

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