Is there a difference between getting the mortgage right from the bank and getting one from a mortgage broker? We've rented our entire lives and I've no clue whatsoever.

(in a few years we'll be moving into hubby's grandmother's house and taking over the mortgage there, currently held by his mother. So I suppose I should take some time to learn a few things, eh?)

In Ontario there are limits on what a mortgage broker can charge.

The total cost of borrowing must be less then 60%. Someone who is a mortgage agent should chime in and speak to this but I am pretty sure that includes the mortgage brokers fee, interest, lenders fee, legal fees and maybe the appraisal.

We have done quite a bit of business in the mortgage community. Most mortgage agents are very ethical and do try to help people out, while others are just downright slimeballs. You do need to be aware of this and deal with a reputable agent. Ask around and get a referral from someone who knows the agent personally.

If a bill collector tells you to talk to "their" mortgage agent run fast and clear of that one. They will probably bring the deal right up to the legal 60% cost of borrowing in many cases. That way they can pay cash back to the bill collector as a "referral fee" .

RE; Mortgage Agent Commission
In most bank aka prime deals, the lender pays the mortgage agent the commission and the loan is at very low cost. Your credit is good after all and bank lenders want your business.

The subprime deals however are a different story, the mortgage agent usually will charge a "mortgage broker fee" which does add to the cost.

No the broker usually takes it out of the proceeds of a refinance or if it is a purchase they expect the client to pay it out of pocket. The lenders pay brokers a finders fee based on volume. They would receive this on top of any broker fee.

I thought that mortgage broker fees were paid by the creditors?

Can the consumer ask for a lower broker fee?

Ever wonder why brokers charge different broker fees? That is because every penny goes into their pocket, minus a small cut to their company.

There is no set guideline by the industry as to what is charged. Keep in mind that all fees are in addition to what the bank pays to brokers as a finders fee on every deal. The higher the volume, the higher the pay.

Some times it is warranted if you work on a deal for months or help someone rebuild their credit.It blows my mind the crazy amounts some of them charge. If you are getting a discounted interest rate and then paying $3000 or more for a broker fee, are you really getting a better deal than what you could get on your own?

I am interested in what brokers and their clients have to say in the matter.

If you're a mortgage broker in Canada, we would like to hear from you.
We're going to get tons of questions from Canadians wanting to know how they can get the best interest rates and no service charges on their future mortgages.

Canadians are getting smarter about shopping for mortgages for their houses.

Canadian Money Advisor wants to be a part of getting you the best information to make your mortgage purchasing decision.

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