A mortgage broker generally acts as an intermediary between borrowers and lenders who provides mortgage loans and secure them for an individual lender. Traditionally a borrower may opt for loans at banks or other financial institutions based on the mortgage value. Ever since the market became competitive, certified mortgage broker Toronto emerged into the industry, mapping the idle lender to the borrower. The popularity of the mortgage brokers has made them one of the largest sellers of mortgage related products to interested individuals.
Certified mortgage broker Toronto work on finding a bank or a direct lender who will be able to finance a specific loan individually based on the mortgage. They are paid by the lender on the loan appraisal process. Mortgage brokers are synchronized to work under the jurisdiction of the financial law of the country. The laws and standards depend on the country they are working under.
Generally, banking undertakings is generally classified into the following six divisions:
- Retail banking which deals with individual personalities and small businesses on a day to day basis.
- Business banking that provides services various mid table businesses
- Corporate banking that is directed at sizeable corporate business entities
- Land mortgage banking which specializes in originating land mortgage loans to different customers
- Private banking that provides wealth management amenities to various individuals.
- Investment banking that provides services related to activities in the financial industry.
Most of the banks make a profit through the above-mentioned means. The duty of the central bank owned by the government is to regulate responsibility and supervise all other financial institutions. Thus, a mortgage broker who works on jurisdiction may know the banking system inside out making it easier for their clients to secure a loan at a faster rate.
The tasks are undertaken by a certified mortgage broker Toronto are:
- They take part in commercial marketing in order to gain attention from the target audience.
- They make assess the profile of the borrower, which includes an assessment of their credit history and their affordability of the loan.
- They find a mortgage product that fits the client that is available in the market.
- The pre-approval process with the lender is done by the brokers by applying for a lenders agreement.
- They gather all documents that are needed in the loan approval process.
- They tend to complete a creditor application form on behalf of their clients
- They also tend to explain the legal disclosures in the process to their clients