There are currently about 700 registered mortgage brokerage firms in Canada, represented by about 4,000 agents and consultants. However, this is only a fraction of the number of people arranging mortgages for the public. Most major lending institutions employ Mortgage Development Officers (MDO’s), employees of the institution, whose job is to create mortgage product for that institution. Most of these MDO's have no formal mortgage training, are not required to provide the detailed disclosure to their clients, and are interested in selling only their employers' products.

Your lending institution will only advise you on their own products. You could visit every institution out there, one by one if you had time or you can talk to a Mortgage Broker who will advise you on the best products available.

Registered Mortgage Brokers are truly independent. They do not work for any individual institution or lender, and their main objective is to get their clients the best possible mortgage that they qualify for.

Technological advances, including the electronic transfer of mortgage applications to lenders through such systems as Lender Specific Systems, and Filogix ensures the integrity of the data transmitted, and a speedy response to the funding request.

Not all mortgages are alike. The interest rate should not be your only concern when arranging financing. Prepayment options, portability, flexibility are all important aspects of your mortgage. Your individual needs play an important part of the mortgage transaction. A Mortgage Broker will take the time to determine what it is you really need, and shop the market to get the mortgage that best suits your requirements. Maybe a CMHC insured first mortgage is not your only option. Maybe a conventional first mortgage and a small second mortgage for a shorter term will be a better fit. A Mortgage Broker can determine how appropriate this scenario is, and can quickly and professionally arrange the required financing.

Most major lending institutions will pay a referral fee to a Mortgage Broker for sending them quality, qualified mortgage applications. If you do not qualify for traditional institutional financing, the Mortgage Broker may be able to locate alternate sources of funds that are prepared to lend money to someone in your circumstances. Do you have to pay for this service? Maybe...but the total costs will be completely disclosed to you in an easy to understand and professional manner.