Hey everyone! It’s been a busy month for me as I settle into my new Dawson Creek office. For all the novel challenges that experience has brought me, the fact that it’s a mortgage office means I’m facing a lot of familiar challenges, too. Don’t get me wrong! I love my mortgage broker business, and if I didn’t love those familiar challenges it wouldn’t have been very smart of me to expand it. That said, there are a few misconceptions surrounding mortgage brokers that I see day in and day out – and that’s an obstacle I wouldn’t complain about getting rid of for good.
The most important issue I want to clarify is this: how in the world do mortgage brokers like myself get paid?
This is a question that’s dear to my heart, because it’s one I get asked several times a week by prospective clients. And it’s a perfectly fair question! It’s obvious that mortgage brokers aren’t simply volunteering their time, and (as much as we love what we do!) we couldn’t work if we weren’t getting paid. Most people – rather understandably, to be honest – assume that by using a mortgage broker, their mortgage payments are somehow feeding our salaries. And so the problem for consumers is this: why should I pay a mortgage broker to get me a mortgage when I can do it just fine on my own?
And here’s the answer, highlighted in bold so it’s impossible to miss:
Here’s how it works. When you go to a mortgage broker for help, we reach out to our extended network of lenders to find a mortgage that’s tailored specifically to your needs. That’s the first, most obvious benefit of using our services: you get to ditch the cookie-cutter mortgages offered by the banks in favour of something custom designed for you. That’s a big benefit, and it’s why a lot of people think they have to pay directly for it. But 99% of the time, the lender we send the deal to pays us directly. That means no cost to you, and I think the reason a lot of people are hesitant to go to a mortgage broker is because that sounds too good to be true… but it is! And if you’re still skeptical, why not give me a call at (250)-782-9665 or sit down with me directly? You’ll never owe me money unless I get you a mortgage – and again, 99% of the time you won’t owe me anything at all.
Let’s get that 1% out of the way right now, because I want to be completely transparent – there are certain cases where you’ll have to pay some money out of pocket. This only applies to clients whose credit history prevents the traditional banks and lenders from approving a loan (for example: a past bankruptcy, a repossessed car or truck, etc). In rare cases like that, the only option might be to contact a private lender, in which case there might be an associated fee.
And that’s it! That’s how mortgage brokers are paid, as plainly as I can explain it. My primary focus in this profession is to get people their perfect mortgage, and if I charged them tooth and nail to do that, it wouldn’t be a very productive endeavour. That’s why in the majority of cases, I don’t charge my clients at all. And if you need to go through a private lender for you mortgage, it’s still better to work with a broker than to wade through those waters on your own. In either scenario, there’s no harm in talking to me about it first. Sit down with me for a quick consultation, and if you still don’t like the sound of my mortgage services, then it’ll have cost you nothing. And if you do like the sound of my services, all the better! It’s a no-lose situation, and what you stand to gain is the perfect mortgage.
I’ll be waiting in my new office if you want to come and chat!
Lori Lalonde, Your Northern BC Mortgage Broker