There used to be a time when everyone would simply go to their bank in order to secure a mortgage. In fact, people still do that, although the practice is less common today than it once was. That’s because mortgage brokers have become a more commonly accepted part of the mortgage process. Let’s examine this further.
First, what exactly is a mortgage broker? It’s someone that acts as an intermediary between a mortgage lender and borrower. In a sense, a mortgage broker helps bring the two together — lender and borrower — so that the two sides can come to as mutually beneficial an arrangement as possible.
Good for both lender and borrower
So, from the perspective of the lender, a mortgage broker will help find a borrower that is willing to pay the offered interest rate. For example, a mortgage broker can help a high-interest lender find a borrower willing to pay such interest rates.
Similarly, a lender offering a more affordable mortgage with lower interests can also benefit from the services of a mortgage broker. It should be noted that it’s the mortgage lender that pays the mortgage broker’s fees.
Of course, the mutually-beneficial arrangement works the other way, too. That is, mortgage borrowers looking for low-interest mortgages can do so through a mortgage broker. Also, some borrowers might have trouble obtaining a mortgage, so the mortgage broker can be of great service in finding a lender, especially one that might require higher interest payments.
A more popular option
Mortgage brokers are more commonly used today for a number of reasons. First, the mortgages market has simply become more competitive, and the public is now more aware of the mortgage options they have before them. No longer is the corner bank the first and only option to secure a loan. And, as the competition has increased, so to have the benefits for consumers and investors.
In addition, it’s not just banks that are offering mortgage loans. Private mortgage have become a steadily increasing part of the market; a fact that offers both lenders/investors and borrowers advantages not seen before.
It should also be noted that ASCEND MIC has developed a trusted broker network. We do all the underwriting and lending, and then allow these brokers to make the best deals possible. It’s all a part of the advanced services offered by a mortgage investment corporation.
ASCEND MIC is a mortgage investment corporation that specializes in offering investors high returns at low risk in Canada’s mortgages market. Please contact us to learn more.