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There are three types of mortgage consultants:

• The representative of the local bank branch: They only offer loans, and have a number of other duties besides mortgage loans, are salaried, with a possibility of an annual bonus.

Traditionally, it is the local bank branch representative who acts as the home loan consultant. He is the only one who has the right to make a mortgage application for clients. The world of mortgage financing has changed and almost all lenders offer their mortgage products through mortgage brokers and, in some cases, through mortgage marketers. The bank representatives still offer mortgage loans (as well as other financial products) but only for the bank they represent.)

• The mortgage marketer: He offers loan products only, specializes in mortgage loans and is mostly paid by commission (paid by the lender).

In order to better serve their customers, banks have begun to hire local representatives. Mortgage marketers go to the client but work principally for a bank or lender. Like the other mortgage brokers, they are paid by commission on the amount of the client’s mortgage.)

• The mortgage broker: He offers the loan products of many lenders, specializes in home loans and works only for commission (remunerated by the lender).

Mortgage brokers have been around for thirty years, but have only become an important factor in the mortgage market over the last few years. Mortgage brokers work directly with many lenders (more than 30) in order to offer the best solution to their clients. Today, there are more than 12,000 mortgage brokers in Canada who represent 27% of the market.)

(NB: I would like to be neutral on this matter, but since I am a mortgage broker, I want to let you know that I believe that a mortgage broker is the best person to deal with for a mortgage. Otherwise, I would have chosen one of the other fields!

You can be sure of one thing, it is the integrity and expertise of your mortgage advisor that will make the most difference. There are very good local bank branch representatives, very good mortgage marketers and very good mortgage brokers. Of course, there are very bad ones as well. It is the person in the position who will make the most difference in the long run.

Of this you can be sure: the expertise and integrity of whatever advisor you work with will make a critical difference. Yes, there are expert local bank branch representatives, expert mortgage marketers and expert mortgage brokers. And then, there are many who do not fully understand this field.

It is the person in the position that is most important.

Mortgage brokering has become more popular

In 2004, a survey conducted by the CMHC indicated that over 26% of all of the home loans in Canada were financed through the intermediary of a mortgage broker. But remember, it is the individual you work with, his integrity and expertise that counts.

Gregory is an Accredited Mortgage Professional (AMP) in Canada. To have more information on Mortgage Broker please visit: www.informezvous.com (Non-English site).

If you have never owned a home before but you are interested in buying you may be wondering how you actually obtain home loans. When you want to buy a home someone will likely not come to your front door and ask you if they can provide you with the funding that you need to buy a home. You need to go out there and ask for the help that you need and there are many different places that you can go to get the financial help that you need to buy your dream home, or at least that starter home that you have been thinking of.

Where to Go to Get a Loan

So, you have decided that you are ready to take the plunge and buy a home, right? Now what? Well, you need to start applying for home loans! If you have never done this before, you may be left holding your head in your hands wondering where you are supposed to go for the financial help that you need. Don’t get frustrated, simply look around you and soon you will find that there are thousands of resources that are out there just waiting for you to take advantage of.

One of the best places that you can find information and application for home loans is your computer. It’s true, you don’t even have to leave home to get the information that you need and get applications out there. You will find that you can fill out one application and have it sent to several different lenders at one time and you will receive information in your email box. This is a great option if you don’t have a lot of time or you don’t feel comfortable calling the lenders yourself to give them your information or ask for help.

If you want to take a more direct approach to finding home loans you can simply open up your local yellow pages and call a few of the mortgage brokers that are in the book. When you call the mortgage brokers you will need to provide them with some basic information to get started. They will pull your credit report and from there they will help you apply for home loans in the hopes that you will qualify for one or more of them. When you pick up the phone and call someone you may get more personal help than you will get if you simply apply for home loans online. Don’t be afraid to ask for help and ask all of the questions that come to mind, that is what these professionals are there for.

As you can see, there are many different ways for you to start applying for home loans. Applying for these loans does not have to be difficult. You will need to provide them with a wealth of information but it is easy to get the process started. Many people wonder how they are supposed to get the process started. All you have to do is pick up the phone and call a mortgage broker or you fill out an online application to get the ball rolling. And, if you tell the person that this is the first time doing this, they will help you along the process and you’ll find that it is not as difficult as you might have imagined that it would be.

Refinance.com provides more information about getting home loans as well as useful tips to find the best ones for you, visit us today at: www.refinance.com/

A recent report revealed that commissions were the single most important factor for brokers, when deciding which loans to recommend. And why wouldn’t they be? After all, mortgage brokers are just salespeople for various lenders. Like most salespeople, selling the deal that’s best for them, rather then the consumer, is the highest priority.

This would shock most consumers. The popular view, that brokers are impartial advisers who would helpfully guide borrowers through the maze of home loan choices, is far from reality.

A large number of brokers were interviewed and the majority clearly indicated that the size of the commissions (both upfront and trailing) was the most important factor used to select a particular lender.

Customer interviews revealed less then 10 per cent were aware that the commission structure might influence a broker’s recommendation.

So how should consumers avoid fattening mortgage brokers’ pockets at their own expense?

Firstly, consumers need to rid themselves of the false belief that the advice given to them by brokers is impartial. Outright accepting of what a mortgage broker tells you is a big mistake.

Secondly, make sure you shop around your self. Do a little research and gain an understanding of what sort of loans are on offer in the market place. A second opinion of what is the best deal for you will put you in a better position to make a decision, especially if that second opinion is your own.

The fact is, getting your information about your home loan second hand means there is more room for misunderstanding, misrepresentation and error. Brokers do tend to leave out key information. Unless you ask a lot of questions, this important information won’t come to the surface until after you have signed the papers.

For example, products with similar rates can have wildly varying features, such as massive fees for having defaulted on a payment. Over the long term these differences can leave you out of pocket and be the difference between you being happy with your home loan or not.

To sum it up choosing the right mortgage product is confusing, stressful and time consuming, but it is something you should take the time to look into yourself. At the very least, ask lots of questions and get more then one opinion.

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Chris Suffern is the mortgage professional managing the site Refinancing Right. Get more essential mortgage refinance information by visiting the site at www.refinancingright.com/ Any time investing in learning about home loans will reward you by saving thousands over the life of your loan.