What is a Mortgage Broker?
A mortgage broker is a licensed professional who compares mortgages from a variety of lenders to find the best option for their clients.
A mortgage broker has relationships with multiple lenders, ranging from the big banks to many alternative, private lenders. Mortgage brokers can also arrange mortgages for homebuyers whose personal circumstances make a bank loan unrealistic. They have ready access a large number of lenders that you, as a member of the public, do not.
What Does a Mortgage Broker Actually Do?
When they receive a mortgage application, a mortgage broker shops it around to their lenders to see which lender will give you the best interest rate, conditions, and terms. Mortgage brokers will come to you, so it’s easier to fit meetings into your busy schedule. Brokers either work solo or within a larger brokerage company. Generally, you won’t be expected to pay a broker; they get paid a commission by the lenders, based on the mortgage product that you end up choosing. There is no direct cost to you, the client.