Mortgage Matters - Originally Published in KLTW a Metroland Media paper distributed in Kawartha Lakes

Mortgage brokering through the years has evolved substantially.  Today’s Mortgage Brokerages compete heavily with our big banks.  Most mortgage brokerages do not charge fees for placing a mortgage with a bank. The funding bank pays the brokerage for bringing that client to them hence covering the cost of the service for the client.  In this writer’s view, the level of service provided by an experienced broker or agent can be far more detailed in nature than what the big banks are able to provide.

Many Mortgage Brokers and Agents have access to private lenders who are looking to invest in financing mortgages against real property such as personal residences, commercial/residential and commercial properties.  The interest rates on private mortgages are higher than the banks; however, they serve a purpose in their own right.  There are costs associated with private mortgaging that are not incurred with bank financing.  A experienced Mortgage Broker will ensure that today’s private borrower has a good exit strategy.  It is important to mitigate the length of time the higher interest private funds are required by the borrower.  He or she should also continue consulting with the borrower, until they qualify for a lower interest institutional mortgage.  This process also results in lowering the risk factors for the private lender.

Mortgage Brokerages are highly regulated by the Financial Services Commission of Ontario (FSCO) and under the Mortgage Brokers Lenders and Administrators Act (MBLAA).  Both mortgage brokers and duly licensed agents may originate mortgages.  Only a Mortgage Broker is permitted to deal in private mortgages.  Mortgage Agents are able to originate a private mortgage transaction; the Broker is ultimately responsible and is required to sign a Form 1, Investor/Lender Disclosure.   Ontario Lawyers are granted the authority to facilitate a private mortgage transaction and have their own disclosure form.

Every Mortgage Broker and Agent comes with his or her own experience and expertise that brought him or her to the business in the first place.  When choosing a Mortgage Broker or Agent, you might be interested to find out what brought them to the business, what experience they may have and how does their service differ from that of another brokerage and your own bank.  Building a connection between you and your Mortgage Broker or Agent is important.  You may be adopting this person as your personal mortgage advisor through future real estate sales and purchases and until eventually your mortgage is paid in full.

Today’s Mortgage Brokerages offers far more than they did in the past.  Services available by mortgage brokerage include; personal mortgage advisor, mortgage consulting, borrowing, lending and investing options, credit repair services, understanding your credit report, saving and budgeting techniques, assisting in their client’s overall financial health. The fact that, Ontario mortgage brokers exists, under today’s strict laws and regulations, compliments the diversity of options available to Canadians today.

Leslie Fallaise, Principal Broker for CENTUM Mavin Lending Ltd. an experienced full service mortgage brokerage serving all of Ontario and located in Lindsay. FSCO 12160

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