Why Use a Broker?

All About Mortgage Brokers

What is a mortgage?

A mortgage is a loan designated to help you purchase a home or property.

The Alberta Mortgage Brokers Association (AMBA) is the collective voice of the mortgage brokerage industry in Alberta. AMBA develops a standard of excellence for its members through advocacy, education, information and networking. AMBA promotes an ethical and sustainable industry for consumers and industry members.

A mortgage broker can help you to find the best mortgage option for your situation. Rather than working for one financial institution, they deal with many different financial institutions on a daily basis. This allows them to offer you more choices and competitive options.

What is a mortgage broker?

Mortgage brokers are independent professionals who work as liaisons between the borrower and the lender to negotiate mortgage loans. They are specialists who facilitate the transaction from start to finish.

How do brokers find the best options for me?

Mortgage brokers study mortgage rate markets and have direct access to different lenders, and can offer you highly competitive options.

Are mortgage brokers employed by the banks?

No they are not. After making sure they understand your needs, they will present lenders with your information and situation. They will then present you with different options for you to make a decision. Your broker can help to educate you on which mortgage is best for you and your financial future at no cost to you.

Who do mortgage brokers get paid by?

Even though your broker works for you, they get paid by the lender (not you). They’re paid a ‘finder’s fee’ by lenders as a reimbursement for bringing them creditworthy customers like you.

In most cases, the lender will pay the fees. However, in some cases,whether institutional or private, the lender will not pay the fees or will only pay half. Also, in some situations broker and lender fees may apply.

How do lenders pay mortgage brokers?

After your broker has analyzed your financial situation and goals, they search for a lender in their lender community that will best meet your needs. Once you make your final choice, your mortgage is placed with the lender. In most cases, after all the details are taken care of and your mortgage is complete, your broker will receive their ‘finder’s fee’ from the lender.

In most cases, the lender will pay the fees. However, in some cases,whether institutional or private, the lender will not pay the fees or will only pay half. Also, in some situations broker and lender fees may apply.

Finding A Broker

AMBA members are the best in the business and adhere to strict ethical rules and regulations determined by the association.

Use our Find A Broker directory to search for an AMBA broker/associate to help you with your mortgage. Find a broker link.