The facts about the mortgage market in Canada reveal its nature and the roles played by mortgage brokers in the process. The biggest segment of the market is banks that have gone from not being involved to market making dominance in less than fifty years. Prior to 1954 they were not permitted to be lender of mortgages. By year end 2008, 62 percent of the outstanding CAD 906 billion worth of residential mortgages was held by them. By 2007, nearly seventy percent were of residential mortgages were theirs. The reason for this dramatic change was that in 1992 banks were allowed to own the major players in the market after the changes of the 1992 Bank Act.

A recent survey has demonstrated that mortgage brokers are seeing rising use of their services, especially by first time homeowners and young women. Yet, most prospective clients end up just going to their lender to obtain their mortgage with little research and basically no bargaining as they accept the first offer. Only a quarter seek the aid of a mortgage broker at the present time, which is still a 15 percent rise over a 10 year period. They lose the potential of a better loan and rate that can be obtained with the free services of a mortgage broker.

An accredited independent mortgage broker can be a boon. The broker can be a source of free unbiased guidance. The broker helps the customer learn about the options and negotiates rates on your behalf with lenders. Licenced brokers are qualified under applicable provincial laws and in good standing.

A distinguishing feature of a mortgage broker, over a mortgage agent, is that the broker has more years of experience. The broker must pass a mortgage broker course. A broker can supervise a mortgage agent.

Mortgage agent may only work for a single mortgage brokerage. Like the broker the agent must be licenced. This requires meeting certain educational qualifications. The agent has to apply for a licence within two years of finishing the required educational program. These can be offered by commercial vendors. The curriculum is standardized; but, the format offerings can vary. An exam tests what has been learned.

A broker has first qualified and worked as an agent. A broker also has successfully taken a mortgage broker course. After taking of the course, the broker has been approved for a licence.

Brokers scout for the optimal choice. A consumer can both save effort and costs by using their service. They also have access to the hundreds of mortgage products individual lenders are not aware of and do not offer. They also may have products that are unique.

These useful services are free. The broker is paid a commission by the lender . The commission earned is for the mortgage term and size, not based on the rate. They can be available to their customers more than bankers, as they work also outside banking business hours. Their clients may also have access to them on weekends and afterhours. Mortgage renewal can also be done through brokers. Assistance with leveraged loans for investment can also be a service they provide. Home buyers who have never owned a home before will find comfort in the support provided by the broker.

Author Bio: Start your mortgage comparison by gathering the facts. Speak to Mortgage brokers about your options. Don’t get fooled by fixed and variable rates, next consider a Mortgage broker course.

Category: Business
Keywords: Finance,business,real estate,Mortgage broker,Mortgage brokers,Mortgage broker course