Canada Mortgage Company
What to Look for in a Canada Mortgage Company
With a healthy real estate market and a strong economy, Canada’s mortgage industry is growing rapidly. How big is it?
According to the October 2006 issue of the Mortgage Brokers Association Newsletter, “Half (50 percent) of Canadians have mortgages and 66 percent of Canadians own homes. Six major domestic banks dominate the mortgage market in Canada with some non-bank lenders and traditional lenders that form all functions.”
How do you choose the right Canada mortgage company for you?
Canada Mortgage Company: The Difference Between a Lender and a Broker
One of the first things you need to understand when shopping for a mortgage is the difference between a lender and a broker. Just what is the difference?
Lenders lend money directly; they don't have to go to other sources to get the money. They are the source of the money.
A Canada mortgage company that is a broker, however, works differently. Once you complete your application, the broker will then shop it to lenders. In essence, mortgage brokers are middlemen.
However, there is a big advantage to getting a loan with a Canada mortgage company that brokers loans. What is it?
A Canada mortgage company that brokers loans (ie, a mortgage broker) deals with many lenders. Therefore, they have an array of products to offer you. Lenders will typically steer you to their products, which may not always be the best deal for you.
This is one more reason to find out if the Canada mortgage company you're considering is a mortgage broker or a mortgage lender.
Canada mortgage company lending tip: You will usually get a better rate if you deal with a lender directly. That's simply because there are no middleman fees to be paid.
Consumer Musts When Looking for a Canada Mortgage Company
Canada Mortgage Company: Consumer Must #1: Check consumer complaints: With mortgage fraud on the rise, one of the best ways to check on the relative status of a business is via the The Canadian Council of Better Business Bureaus (CCBBB).
Arguably, the premier consumer protection agency in the country, “The BBB promotes trust in the marketplace . . . It collects complaint histories and other information about businesses and provides consumers with unbiased reliability reports to better enable them in their purchasing decisions.”
This is a good starting point to check on the reputation of any business you may be considering doing business with.
Canada Mortgage Company: Consumer Tip #2: Is the business registered with an official industry organization?
One of the pre-qualifying questions you should ask any Canada mortgage company you're considering using is “What professional organizations are you affiliated with?”
Reputable companies like to solidify their image – especially in the financial services sector. The main industry-specific organization any reputable Canada mortgage company would be a member of is The Canadian Institute of Mortgage Brokers and Lenders (CIMBL).
The benefit to you as a consumer is that members are bound by professional standards and a Code of Ethics.
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