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Do You Know How Your Mortgage Broker is Paid?

How is your mortgage lender paid?

How to Ensure YOUR Interests are Front and Center

Do You Know How Mortgage Providers are Paid?
When making among the largest financial commitment of your life, it’s important to understand how different types of mortgage providers get paid to ensure your best interests are always front and centre.
There are three common types of mortgage providers: Mortgage Brokers; Bank Branch Employees; and Bank Mortgage Reps. 
Bank Branch Employees
Bank employees have sales quotas. And all employee salary increases, bonuses and promotions are based on their sales quota results. This includes sales results for a bank’s single line of mortgage products, as well as the growth of their investment portfolios and other offerings. Bank employees focus on several financial products in addition to mortgages.
Bank Mortgage Reps
Also known as bank mortgage specialists, regardless of what they’re called, they still only sell mortgage products for one bank. They’re typically the bank’s contract employees and earn straight commission. 
While they only have access to their bank’s offerings, some can tap into a discount program through their bank. They get paid significantly less for providing these products, however, so this isn’t often their first choice for most borrowers. They make more money by putting you in a longer term at a higher rate.
Mortgage Brokers
Also referred to as mortgage associates or agents, we’re all independent providers who work for you, not the bank or any other lender. I have access to dozens of lenders including banks, credit unions, trust companies, private funders, and so on. More choice means I’m better able to negotiate a mortgage product and rate that best meets your specific needs.
I receive deep discounts for borrowers because I do all the work for the lender, as opposed to the lender having to pay a frontline sales staff member’s salary, commissions and benefits. I only get paid by the lender once your mortgage funds. That means it’s always in my best interest to keep my clients happy throughout the homebuying and mortgage processes, and beyond. 
But, more important than rate, is the fact that I know the ins and outs of numerous mortgage product lines because that’s what I do daily. I can help save you money throughout your life as a mortgage holder by suggesting accelerated payment cycles and other prepayment strategies that won’t see you put into a ‘no-frills’ mortgage to save money upfront, while risking thousands down the road should you need to break your mortgage early.
A home loan is a huge financial commitment and it’s important to have the peace of mind that comes along with being able to rely on your provider to be there throughout your life as a mortgage holder, not just for a single mortgage term. I believe in building customers for life.
Have questions about using a Red Deer mortgage broker or your Red Deer mortgage options in general? Answers are just a phone call or email away!

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