In short, one of the ways mortgage brokers can get paid is a certain percentage of the loan by the bank.
Why would the banks pay the mortgage broker? Because the mortgage broker does all the paperwork and hands the bank the mortgage on a “silver platter”. The mortgage and the client that the mortgage broker delivers to the bank or lender is very valuable. They will pay the mortgage broker a commission for referring the business to them. But don’t worry (not that you were anyway), the bank gets paid too! How? Through the interest (and perhaps fees) that they will be collecting from you over the next 5 years. How else will they get paid? Well, when you walk into the bank they will try to sell you:
The mortgage broker’s commission is a small price for them to pay for the business and potential business that you have delivered to their doorstep.
Call Robert Floris at 905-574-9200 Ext. 215 to discuss any mortgage-related needs including new home purchases, debt consolidation and refinancing. Or come by the office at 651 Fennell Ave. East located on the East Hamilton Mountain.