How do I get paid? It is a question we often get and the answer is that we get paid a fee by the bank that we ultimately place your mortgage with. I think the real question is why should you use a mortgage broker to negotiate your mortgage? And the answer is, why not? As we have talked about before the ultimate price that you end up paying in rate between negotiating on your own or using a mortgage broker is by in large reasonable the same so why would you not want to pay for professional representation between you and the bank.

Why is that important? Well, it is often not talked about but some banks have onerous small details or polices that they of course don’t talk about that are really detrimental to you. For instance you could be having a mortgage that is a completely closed mortgage. Which means you can’t pay it out or do anything without having to sell the property. What happens if you want to refinance or do something different with your mortgage in the middle of your term? The other one is, the way they registered the mortgage will determine that they might have more restrictions on you being able to move your mortgage from that particular lender and if you do the payout penalties are significantly higher.

Another one is, many banks have different ways that they calculate the interest rate penalties that you might have on refinancing or renegotiating your mortgage in the middle of the term.

And the final one is, some of the lenders have, when you do a line of credit as a component or all of your mortgage, they don’t register the interest rate on title. Which of course means that in the future if they want to change the rate on you they would be able to do that.

So the point that I think I am making is that if the price is ultimately the same then how do you make a decision on who has the privilege of managing your mortgage. And I think the answer is, why would I not choose professional representation that has my back as opposed to me going it alone and working with the bank directly.

Thanks for watching.

If you would like more information on this or other mortgage related topics contact Canada Mortgage Direct in one of the following ways:

Visit our website at CanadaMorgageDirect.com.

You can phone our office: 403-250-2100

Or you can email us at Save@CanadaMortgageDirect.com

We would also like to invite you  to the Canadian home Buyers Academy and you can visit us there at theCanadianHomeBuyersAcademy.com

Thanks again!