You might think that since the mortgage broker finds the borrower, the lender doesn’t have to pay the costs associated with obtaining that borrower, such as advertising and marketing, having branch offices, etc., and therefore dealing with mortgage brokers is more profitable for a lender. While that is certainly the case, it is only true when mortgage brokers meet the following set of basic expectations.
If a broker fails to meet these expectations, then the lender will most likely stop dealing with that broker since the brokered transactions will become unprofitable.
Mortgage brokering in Ontario is regulated by the Financial Services Commission of Ontario (FSCO) and requires a license. To obtain a license you must first pass an accredited course. The Real Estate and Mortgage Institute of Canada Inc. (REMIC) is accredited by FSCO to provide the course. For more information please visit us at www.remic.ca/getlicensed or call us at 877-447-3642.
These expectations can be summarized as
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- Provide borrowers who are suitable for the lender
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- Provide appropriate protection against fraud
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- Facilitate the transaction to its successful completion (funding).
These three expectations form the cornerstone of the relationship between the lender and the brokerage community. The best way to ensure that these expectations are consistently met is to adopt them as core values or philosophies that are applied to every transaction. To meet these expectations they must first be explained.
1. Providing borrowers that are suitable for the lender
The lender’s first expectation is that the mortgage agent will only send an application on behalf of a borrower that fits the lender’s lending criteria. Lending criteria include such things as income and employment requirements, property requirements, credit requirements and so on. This means that the mortgage agent must know and understand the lender’s lending criteria and be able to accurately assess the borrower to determine if they meet those criteria.
Unfortunately, a typical lender complaint is that some mortgage agents send them applications for products that they do not have. This type of error can erode the confidence that lenders have in the brokerage community.
2. Providing appropriate protection against fraud
Lenders have been suffering from an increase in mortgage fraud over the past several years. Although not technically a mortgage agent’s legal responsibility, it is a mortgage agent’s ethical and moral responsibility to make reasonable attempts to protect the lender from fraud.
In many brokerages’ set of Best Practices it is deemed necessary for the mortgage agent to review all documentation received from the borrower for accuracy and consistency. This means identifying any signs of potential fraud, such as poorly written or typed income verification as well as verifying income and identity.
3. Facilitating the transaction to its successful completion
A lender expects that a mortgage agent has submitted an application to that lender because he or she has determined that lender to be the most appropriate for the borrower. In addition, the lender expects that, if approved, the mortgage transaction will close. That requires the mortgage agent to ensure that the borrower is committed to completing the transaction and understands what is required of him or her to conclude it.
A lender also expects that a mortgage agent will be available to assist in ensuring the transaction closes if there is anything that the mortgage agent is required to accomplish such as meeting outstanding conditions.
A Lenders
1. Alterna SavingsAlterna Savings is a local credit union and a member of the Deposit Insurance Corporation of Ontario.
Website: alterna.ca
Consumers / Brokers
Website: bmo.com
Consumers
B2B Bank is a leading provider of banking products and services to financial advisors and mortgage brokers across Canada.
Website: b2bbank.com
Consumers / Brokers
Website: cibc.com
Consumers / Brokers
5. CMLSCMLS Financial is one of Canada’s largest, independently owned mortgage services companies. Founded in 1974, we are proud to be Canada’s Mortgage Company™ for over 40 years. With offices across the country, we provide a wide range of commercial lending services, residential real estate mortgages and institutional services.
Website: cmls.ca
Brokers only
6. Community TrustWhether you’re a home buyer, an investor, or someone looking for a safe place for your savings, Community Trust and its team members can offer a solution. We pride ourselves on a creative and optimistic approach to finding you the best options, executed by experienced and capable experts in the financial services field.
Website: communitytrust.com
Consumers / Brokers
7. Duca Credit UnionHelping you live more fully. That’s how we approach our mortgages at DUCA. To do this, we offer exceptional rates, personal service, advice and a range of ways to use mortgage products that fit your needs today and the goals you have for the future.
Website: duca.com
Consumers / Brokers
8. Equitable BankLooking for a mortgage? Equitable Bank has a great line of products that can be customized to fit your circumstances.
Website: equitablebank.ca
Brokers only
9. First National FinancialFirst National is Canada’s largest non bank lender of single family residential mortgages, commercial mortgages and multi family mortgages.
Website: firstnational.ca
Brokers only
10. First Ontario Credit UnionYou’ve got a few different options when it comes to borrowing money at FirstOntario. We offer competitive loans, lines of credit and mortgages and we’re happy to sit down with you to talk about the details.
Website: firstontario.com
Consumers / Brokers
11. HomeEquity BankWe believe the best place to retire is in your own home. If you are a Canadian homeowner 55 or over, you can turn up to 55% of the value of your home into tax-free cash.
Website: homeequitybank.ca
Consumers / Brokers
12. Home TrustHome Trust Company: Canada’s One Stop Mortgage Lender offering Mortgage, Visa card, and Deposit products.
Website: hometrust.ca
Consumers / Brokers
13. ICICI Bank of CanadaICICI Bank Limited is a leading private sector bank in India. Established in December 2003, ICICI Bank Canada is a full-service direct bank with an asset base of about C$6.5 billion as at December 31, 2019, and it is a member of the Canada Deposit Insurance Corporation. The Bank offers a wide range of financial solutions to cater to personal, commercial, corporate, investment, treasury and trade requirements.
Website: icicibank.ca
Consumers / Brokers
14. IC SavingsAt IC Savings we take a more personal approach to granting mortgages, considering your individual circumstances, rather than applying automated scoring models that treat everybody the same. We use a thoughtful process to guide our lending decisions. Know that we will take the time to listen to you and build a mortgage that’s in your best interest.
Website: icsavings.ca
Consumers / Brokers
15. Kawartha Credit UnionService excellence is one of our core values. We believe that our members deserve great advice and personalized service. Providing you with the best possible experience is our #1 priority.
Website: kawarthacu.com
16. Manulife Bank of CanadaWebsite: manulifebank.ca
Consumers / Brokers
17. MCAP Mortgage CorporationMCAP is one of Canada’s largest independent Mortgage Finance Companies, with over $100 billion in assets under management.
Website: mcap.com
Brokers only
18. MeridianMERIX Financial operates 3 distinct industry-leading options: MERIX Financial, Lendwise, and NPX. Since founding in 2005, MERIX Financial has provided residential mortgages to over 200,000 Canadians from coast-to-coast.
Website: merixfinancial.com
Brokers only
19. Optimum / Canadian WesternCWB Optimum Mortgage helps non-traditional borrowers achieve their financial goals with a range of personalized alternative lending solutions.
Website: optimummortgage.ca
Brokers only
20. Radius FinancialFounded by a group of top mortgage industry professionals, Canadian-owned and operated radius Financial (formerly myNext Mortgage Company) is a next-generation mortgage lender that combines the best of experience and innovation
Website: radiusfinancial.ca
Brokers only
21. Peoples BankAt Peoples Bank, we’re with you every step of the way. From pre-approval to helping you set your budget and finalizing all the little details. We strive to optimize your experience through a quick and easy process to achieve your financial goals.
Website: peoplesbank.ca
Consumers / Brokers
22. RFA Bank of CanadaWhether you’re buying your first home, upgrading, investing, or renewing your mortgage, we can walk you through your options and help you find the solutions that best fit your needs.
Website: https://www.rbcroyalbank.com/mortgages/index.html
Consumers only
23. Royal Bank of Canada (RBC)Whether you’re buying your first home, upgrading, investing, or renewing your mortgage, we can walk you through your options and help you find the solutions that best fit your needs.
Website: https://www.rbcroyalbank.com/mortgages/index.html
Consumers only
24. ScotiabankOur mortgage advisors show you mortgage solutions customized to your needs, so you can enjoy your home knowing you made the right decision.
Website: scotiabank.ca
Consumers / Brokers
25. Shinhan Bank CanadaShinhan Bank Canada is a Federally Regulated Financial Institution which is wholly-owned subsidiary of Shinhan Bank Korea. Our doors opened in March 2009 and since that day we have been privileged to serve our communities
Website: shinhan.ca
Consumers / Brokers
26. TD Canada TrustVisit TD Mortgages, a great resource for finding the right mortgage solution for you and learn more about how to become a successful homeowner.
Website: tdcanadatrust.ca
Consumers / Brokers
27. Teachers Plus Credit UnionTeachers Plus offers high ratio mortgages, conventional mortgages, and collateral and pre-approved mortgages with amortizations of up to 25 years.
Website: teeachersplus.ca
Consumers / Brokers
28. Your Neighborhood Credit UnionWe’re a straight-talking financial partner who understands the real trials and financial realities of our members’ lives today.
Website: yncu.com
Consumers / Brokers
29. XMC Mortgage CorporationWe’re an agile mortgage lender with the experience, the character and the commitment to excellence required in Canada’s evolving real estate market.
Website: xmcmortgage.com
Consumers / Brokers
B Lenders
1. Bridgewater BankWe understand your mortgage is one of the most exciting, important financial decisions you’ll make. That’s why we offer mortgage solutions that help you meet your goals and suit your lifestyle. Bridgewater Bank is one of the top alternative mortgage companies Canada has to offer.
Website: bridgewaterbank.ca
Brokers only
2. Canadian Mortgages Inc.Canadian Mortgages Inc. (CMI) is a leader in the private lending space. We are a dedicated private lender whose only goal is providing you and your clients with fast and straightforward financing solutions.
Website: canadianlending.ca
Brokers only
3. CMLSCMLS Financial is one of Canada’s largest, independently owned mortgage services companies. Founded in 1974, we are proud to be Canada’s Mortgage Company™ for over 40 years. With offices across the country, we provide a wide range of commercial lending services, residential real estate mortgages and institutional services.
Website: cmls.ca
Brokers only
4. Effort TrustThe Effort Trust Company specializes in Financial Services, Real Estate and Asset Management. Established in 1978, Effort Trust is entrepreneurially driven and continuously strives for excellence and quality service for all of our clients.
Website: efforttrust.com
Brokers only
5. Fisgard LendingFisgard Asset Management works with one of the largest private alternative lenders in Western Canada, Fisgard Capital Corporation. We are dedicated to supporting mortgage brokers and their clients. We provide competitive products, flexible lending guidelines and dedicated customer service.
Website: fisgard.com
Brokers only
6. First Swiss MortgageWe are a leading institutional lender offering a competitive line of mortgage products to help consumers achieve their dreams of home ownership and financial freedom.
Website: firstswissmortgage.ca
Brokers only
7. Haventree BankWelcome to Haventree Bank. We see the potential in hard-working Canadians like you. We help brokers and borrowers find flexible mortgage solutions. Our goal is to be the first choice in the non-/near-prime mortgage market.
Website: haventreebank.com
Brokers only
8. Marathon MortgageOur friendly, knowledgeable service representatives and experienced mortgage professionals are ready to respond to any inquiry with true customer focus. We uphold strong underwriting standards paired with a common sense approach providing timely, efficient and flexible servicing to our mortgage brokers and agent partners.
Website: marathonmortgage.ca
Brokers only
9. MCAP Mortgage CorporationMCAP is one of Canada’s largest independent Mortgage Finance Companies, with over $100 billion in assets under management
Website: mcap.com
Brokers only
10. Mercury MortgagesIf you’ve needed to rely on co-brokering for your private deals with other brokers, your problems are over now. By dealing with us, you will be dealing directly with the lender and decision maker. This mean you will no longer need to split your fee with another broker
Website: kotharigroup.com/mercury_mortgages
Brokers only
11. New Haven MortgageAt New Haven Mortgage we work with you to get you approved regardless of your income or credit challenges.
Website: newhavenmortgage.com
Consumers / Brokers
12. Optimum / Canadian WesternCWB Optimum Mortgage helps non-traditional borrowers achieve their financial goals with a range of personalized alternative
Website: optimummortgage.ca
Brokers only
13. Secure CapitalWe deal exclusively with mortgage brokers and agents to provide excellent financing solutions for clients who do not qualify for loans through traditional lenders. As private mortgage lenders across most of Canada, Secure Capital specializes in residential and small commercial mortgages.
Website: securecapitalmic.com
Brokers only
14. XMC Mortgage CorporationWe’re an agile mortgage lender with the experience, the character and the commitment to excellence required in Canada’s evolving real estate market.
Website: xmcmortgage.com
Brokers only
Cain Daniel
Cain Daniel has held positions with both a national mortgage brokerage firm and an Ontario Credit Union for the past 8 years. His previous roles include training and development for a national financial services company, as well as an instructor while in Germany. Cain continues to be instrumental in the development of Remic’s sales training modules, marketing content, and social media workshops. He is responsible for assisting brokerages grow their business through new agent training and the implementation of educational and training programs designed to increase the brokerage’s market share and overall agent performance.