A contract broker is a mediator between a budgetary institution that offers advances and an individual attempting to borrow money. The contract broker will work with both parties, collecting and verifying the fundamental printed materials the loan specialist needs from the borrower in order to arrange the loan. A contract broker ordinarily works with numerous banks and can offer an assortment of advance choices to the borrower they work with.
A mortgage broker is a professional who guides a client in their search for financing. As an independent broker, he is affiliated with a mortgage agency that is not owned by a financial institution or an insurance company. In fact, these Quebec mortgage agencies are mostly SMEs.
Do not confuse the mortgage broker and the mortgage salesperson. The latter is an employee of a financial institution that only offers their own products.
The service is free since the mortgage broker is remunerated by the lender after the conclusion of the mortgage with the notarized deed.
A contract broker points to total genuine domain exchanges as a third-party middle person between a borrower and a loan specialist. The broker will collect data from the person and visit different banks in order to discover the best potential advance for their client. Ultimately, the broker serves as the advance officer; they collect the necessary information and work with both parties to induce the credit closed.
A second mortgage is a loan taken out on a property with an existing mortgage. It provides access to the equity available in the property, often at a lower rate than most other types of loans. For this reason, second mortgages are a popular way to borrow significant sums of money relatively quickly, if needed.
Your lender or mortgage broker/agent must ensure that you can afford a mortgage. To do so, they will do a debt service ratio analysis (a comparison of your debt to your income) to see if you can afford the mortgage you want.
Most lenders will require that your monthly housing costs (gross debt amortization), including mortgage payments, property taxes, condo fees and heating charges, do not exceed 32% of your gross monthly income.
They will also want to check if the total monthly amount of your debt, such as loans or car rentals and credit card payments (total debt), does not exceed 44% of your gross monthly income.
The mortgage agency is committed to acting with integrity and transparency. In addition to serving their clients, brokers have extensive experience partnering with advisors who refer their clients. Lenders appreciate the quality of the financing requests made by brokers who are less risky for them because their files are known. Files are submitted according to the specific criteria of each lender, therefore it is easier to verify and approve the file.
Mortgage brokerage is a well-regulated profession regulated by the Organisme d’Autoréglementation du CourtageImmobilier du Québec (OACIQ). The OACIQ ensures consumer protection. A mortgage broker after obtaining his title is subject to specific conditions set out in the Real Estate Brokerage Act.
In partnership, the mortgage broker can help your client safely enjoy the best private mortgages financing conditions.
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