Independent Mortgage Advisor FeesFees of the independent mortgage consultant
This means that if you are spending four weeks talking a mortgage transaction with a real estate agent and the house chooses to refuse the transaction - not only will you be without a mortgage, but your real estate agent will be without a paycheck.
In order to prevent this, agents "qualify" a customer - a concept used to define whether you are the borrower or not that most financial institutions would consider a "major customer". When you are a "main customer", you should not be expecting to make a charge to your mortgage agent and you will be given the most competitively priced mortgage interest rate on the mortgage market. However, if you are a "main customer", you should not be expecting to make a charge to your mortgage agent.
People on the "non-prime" customer lists can count on paying mortgage brokerage fees ranging from 0.5% to 2% - but you don't even owe this extra when the mortgage request is accepted and completed. "It' s customary for a non principal borrower for a real estate agent to add an extra commission to the finders commission charged by the creditor to the real estate agent," said Robert McLister, a mortgage agent and founding member of RateSpy.com.
This is because non-prime mortgage customers usually have far more sophisticated mortgage management solutions that demand much more working time. "No such thing as easy non-prime use. Often brokerage firms need to call more than one creditor to see who has the best deal for the client's particular circumstances," McLister says, "and that requires a lot of practice and practice. However, all fees should be revealed before you contact the creditor, McLister states.
"Ontario legislation demands that mortgage agents reveal all fees in advance before signing a mandatory mortgage deed. "Mortgage brokerage is not allowed to charge for a mortgage that is $300,000 or less before it receives a mortgage-license. "Your policy would then explicitly indicate that a termination charge will apply if you exit after receiving approval," says McLister.
Mortgages agents are judged by their effectiveness - the number of approvals they file with creditors who actually shut down. And if this rate of effectiveness falls below 65% to 75%, they run the risks of loosing or being completely truncated from their specific discount with this creditor, damaging prospective customers and their competitiveness.
Therefore, some stockbrokers try to prevent course swimmers from canceling a request by charging the cancelation charge. It is necessary to check the agreement that you have made with your agent to see if a brokerage charge was involved, in addition to any creditor charge that the agent would have had.