Mortgage Consultants are There for Their Clients, not for Lenders. (courtier Hypothécaire)

<h1>Mortgage Consultants are There for Their Clients, not for Lenders. (courtier Hypothécaire)</h1>Author: <a title="Gregory van Duyse" href="http://www.articlesbase.com/authors/gregory-van-duyse/16122.htm">Gregory van Duyse</a> When you are negotiating a mortgage, there are two participants, who are, in a way, opponenst: the borrower and the lender. They each want something different. The borrower wants to pay the lowest interest rate, and the lender wants to make the most amount of money possible. A mortgage broker (courtier hypotheque) is there to help work out the terms of the mortgage.

So, you ask, is the mortgage broker there for the borrower or for the lender? If you realize that the commission is paid by the lender, you may have the conclusion that the broker is there for the lender. Luckily, this is not so.

The mortgage business is a very competitive business in Canada. Some of the larger mortgage brokers (courtier hypotheque) broker billions of dollars of home loans annually. LendersLending institutions want to work with brokers so they can increase their loan business as much as possible.

Lenders offer all brokers (courtier hypothecaire) about the same commission. This means that each broker can be fairly independent, since he will make the same commission regardless of which lending institution he works with. (Of course, borrowershome buyers) like this arrangement since it means that they do not have to pay a fee.)

Fierce competition such as this leads lenders to partner with brokers and that a broker can present a borrower’s loan file to 50 lenders without any extra effort by the borrower.

This is the reason the borrower can be considered a client of the broker (courtier hypothécaire). A broker will try to get the best mortgage package for each of his clients.

The objective of a good mortgage broker are :

1) To create clients for life

2) To make them happy enough to refer the broker to friends, family and neighbors

If the broker (courtier hypotheque) is making his living by commissions, he has to build a strong reputation among borrowers and potential borrowers so that his fees will continue to grow.

This shows that, even though the lender pays the broker’s fee, it is the borrower that the broker works for and wants to keep satisfied.About the Author: Gregory is an Accredited Mortgage Professional (AMP). To get more information on <a href="http://www.infohypothecaire.com/Hypotheque/Pourquoi_un_courtier_hypothecaire.html">mortgage brokers - courtier hypothecaire,</a> please visit: <a href="http://www.infohypothecaire.com">Hypothèques - Mortgage loans</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/mortgage-articles/mortgage-consultants-are-there-for-their-clients-not-for-lenders-courtier-hypothcaire-115212.html" title="Mortgage Consultants are There for Their Clients, not for Lenders. (courtier Hypothécaire)">Mortgage Consultants are There for Their Clients, not for Lenders. (courtier Hypothécaire)</a>

When you are negotiating a mortgage, there are two participants, who are, in a way, opponenst: the borrower and the lender. They each want something different. The borrower wants to pay the lowest interest rate, and the lender wants to make the most amount of money possible. A mortgage broker (courtier hypotheque) is there to help work out the terms of the mortgage.

So, you ask, is the mortgage broker there for the borrower or for the lender? If you realize that the commission is paid by the lender, you may have the conclusion that the broker is there for the lender. Luckily, this is not so.

The mortgage business is a very competitive business in Canada. Some of the larger mortgage brokers (courtier hypotheque) broker billions of dollars of home loans annually. LendersLending institutions want to work with brokers so they can increase their loan business as much as possible.

Lenders offer all brokers (courtier hypothecaire) about the same commission. This means that each broker can be fairly independent, since he will make the same commission regardless of which lending institution he works with. (Of course, borrowershome buyers) like this arrangement since it means that they do not have to pay a fee.)

Fierce competition such as this leads lenders to partner with brokers and that a broker can present a borrower’s loan file to 50 lenders without any extra effort by the borrower.

This is the reason the borrower can be considered a client of the broker (courtier hypothécaire). A broker will try to get the best mortgage package for each of his clients.

The objective of a good mortgage broker are :
1) To create clients for life
2) To make them happy enough to refer the broker to friends, family and neighbors

If the broker (courtier hypotheque) is making his living by commissions, he has to build a strong reputation among borrowers and potential borrowers so that his fees will continue to grow.

This shows that, even though the lender pays the broker’s fee, it is the borrower that the broker works for and wants to keep satisfied.

Gregory is an Accredited Mortgage Professional (AMP). To get more information on mortgage brokers - courtier hypothecaire, please visit: Hypothèques - Mortgage loans

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/mortgage-articles/mortgage-consultants-are-there-for-their-clients-not-for-lenders-courtier-hypothcaire-115212.html

Article Tags: Mortgage, Mortgage Calculator, Mortgage Rates, Home Loan, Mortgage Loan, Mortgage Broker, Hypotheque, Taux Hypothecaire, Courtier Hypothecaire, Pret Hypothecaire, Mortgage Strategie, Financement Hypothécaire, Intelligence Hypothecaire

Related Articles
Related Q&A

Latest Mortgage Articles
More from Gregory van Duyse

What Are FHA Housing Loans?

By: Al Hardy | 18/12/2009
FHA Housing Loans have become the only low down payment option available in today's housing market. They have become very popular and they may be the only way that you can get a mortgage for your dream home!

Reverse Mortgages and exactly how they work

By: Paul Ingersole | 18/12/2009
The reverse mortgage concept came about because of the amount of cash poor retirees having to sell the homes to live. Most of these people owned or had very significant equity in their principal residence but were quite cash poor. The best part about a reverse mortgage is that the borrowers have no restrictions on what they use the money for. Whether they want to use the money to travel or give their grandchildren money for university they have choice.

How To Get Bad Credit Home Loan Refinance Like A Breeze

By: Alan Lim | 18/12/2009
If you think it is impossible to get bad credit home loan refinance easily, then you need to change your outlook. Now, there are ways by which you can get such loan options like a breeze.

Refinancing a Mortgage with Bad Credit and Obamas Stimulus

By: MPetrone | 17/12/2009
Mortgage refinancing for homeowners with bad credit just got much easier thanks to over $75 billion in funding from President Obamas “Home Affordability” stimulus plan. This program is aimed at helping struggling homeowners get help through new mortgage refinancing and modification options. The goal is to help millions of people save money and avoid losing their home. Here are some things you should know.

Mortgage Modification - JP Morgan Chase Bank Loan Modification

By: Jason Witts | 17/12/2009
There are many lenders in the market, and if Chase Bank is your lender, then this article will be of immense help for you. The JP Morgan Chase Bank Mortgage Loan modification is a great break-through for many suffering homeowners by saving their homes from auction due to non-payments of their monthly dues.

Obama Loan Modification - How to Get It

By: Brandi Smith | 17/12/2009
Condensation: 1. Is a Government Mortgage Modification for You?? 2. Do you know if you qualifyfor aMortgageAffordable Modification? 3. You {|demanded an HAMP Loan Modification Are you positive? 4. They give you a trial period, now what? 5. Will you get a set in stone modification? The foreclosure has affected us . If you are one of the {millions|thousands|tens of copious of households that purchased houses at the pinnacle of the housing boom or refinance the ...

How Do I Know If I Should Refinance?

By: Suzanne Player | 17/12/2009
What should you consider when deciding whether to refinance your home? 7 Factors you must consider, along with 3 reasons not to do the transaction.

How Would an Adjustable Rate Mortgage Affect You?

By: Suzanne Player | 17/12/2009
The term ARM stands for adjustable rate mortgage. An ARM is a loan whose rate can, and most likely will, change during the course of the mortgage. Learn how an ARM might affect you and see examples of payment calculations.

Is it a Better Idea to Make your Home Loan Payments Weekly, Every Two Weeks, or Monthly? - Prêt Hypothécaire

By: Gregory van Duyse | 13/09/2007 | Mortgage
The more often you make the payments, the more savings, even if you do not increase the amount paid. If it is possible, make your payments each week, if not, make them every two weeks - hypothèque.

The Most Common Situations That Lead to a Penalty (taux Hypothecaire)

By: Gregory van Duyse | 24/07/2007 | Mortgage
No borrower wants to pay a penalty on his home loan! That’s for sure, but all mortgage loans, apart from some unusual types of open mortgages, have penalties for prepayments. The question of penalties includes many aspects which need clear explanation and examples in order to be able to fully comprehend them.

How to Save on Mortgage Penalities (hypotheque)

By: Gregory van Duyse | 23/07/2007 | Mortgage
No borrower wants to pay a penalty on his home loan! That’s for sure, but all mortgage loans, apart from some unusual types of open mortgages, have penalties for prepayments. The question of penalties includes many aspects which need clear explanation and examples in order to be able to fully comprehend them.

How are Calculated Mortgage Penalities (hypotheque)

By: Gregory van Duyse | 13/07/2007 | Mortgage
No one wants to pay a penalty on his home loan! That’s for sure, but all mortgage loans, apart from some rare types of open mortgages, have penalties for prepayments. The subject of penalties includes many aspects which need clear explanation and examples in order to be able to fully comprehend them.

The Variable Mortgage Strategy - Hypotheque

By: Gregory van Duyse | 12/07/2007 | Mortgage
The interest rate of a variable rate home loan changes with the base rate of the large Canadian banks. The lender does not give you a fixed rate, but rather a rabais on the base rate. This is the reason that variable rates are expressed as a base rate less a percentage. If the base rate, for example, is 6.00%, and the bank quotes “base rate minus .90%”, this means that the variable rate loan will be 5.10% for the length of time that this base rate is in effect. If the base rate is lowered by the Bank of Canada, the loan rate is likewise lowered: a new base rate of 5.25% will mean a variable mortgage rate of 4.35% for that period. The Bank of Canada fixes this rate 8 times per year. Note that this rate may be refixed at the same rate (no change), so the base rate does not necessarily have to change 8 times a year.

The Fears of Mortgage Lenders

By: Gregory van Duyse | 19/06/2007 | Mortgage
Once you understand what mortgage lenders don’t want to face, you will better understand whether or not your application will be viewed in a good light by the mortgage lenders you apply to - taux hypothecaire. A lender has two big fears: - Losing Time - Losing money.

Should you Work With a Mortgage Broker, a Mortgage Marketer, or a Bank Representative?

By: Gregory van Duyse | 14/06/2007 | Mortgage
The service of the person with whom you will work is most important.

What’s Best to Work With, With a Mortgage Broker, a Mortgage Marketer, or a Bank Representative?

By: Gregory van Duyse | 17/05/2007 | Mortgage
Of this you can be sure: the expertise and integrity of whatever advisor - taux hypothecaire you work with will make a big difference. Yes, there are expert local bank branch representatives, expert mortgage marketers and expert mortgage brokers. And then, there are those who do not fully understand this field. It is the person in the position that is most important.