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All You Need to Know About Mortgage Lenders in Canada


Since the rate of Canada mortgage is favourable for many homebuyers, the demand to finance real estate is increasing rapidly. While many people are pre-determined about borrowing money from lenders to invest in properties, very few are aware about their lenders and lending options.

So which is the right place to get a loan for real estate? Most importantly, which type of mortgage lender is the best choice?

You will never find a straightforward answer for this question because the most suitable choice available varies from person to person. The best one for you depends on your personal requirements and situation. Thus, it is wise to compare all options before you apply for a loan. The following are the sources for you to check out.

Mortgage Brokers

According to statistics, a majority of the real estate loans for Canada mortgage comes from mortgage brokers. However, they are not the direct lenders. Basically, they are operating between borrowers and lenders and help the two parties come together. Mortgage brokers work with multiple lenders at the same time. There are a number of factors you need to take into consideration before you decide to hire a mortgage broker. The most important factor is the fee. You need to make sure whether the broker is charging a fee from the lender or buyer, or both.

Mortgage Bankers

Quite easy to guess – mortgage bankers work for banks. They do not necessarily represent only a single bank. However, the financing they offer for Canada mortgage are basically funded by banks and are bank loans. Factors to ponder over include:

-    Since finance is provided by banks, the fees are usually nonnegotiable and set according to the policy of the bank.

-    The banker should be checked for a licence.

-    Bank limits loan product offers.

Commercial Banks

A range of services are offered by commercial banks. You can count a number of commercial banks on your fingertips. The factors include:

-   Rates set by banks are competitive.

-   Your commercial bank can offer incentives or discounts on loans if you operate in the same bank for more than one reason including maintaining a saving or checking account, etc.

Credit Unions

A number of lending institutions continuously attack credit unions because these institutions enjoy exemption from paying federal taxes and make the most out of specific taxable advantages that are not available to other institutions. Credit unions are generally set up by individuals who share common objectives or interest. Examples of such groups include community education employees, state government and/or religious groups.

Private Lenders

Any individual with money in the bank can offer you loan for real estate. However, to do so they must comply with state and federal regulations with regards to items such as charges, fees and rates. They are also required to provide legal disclosures.

People looking for Canada mortgage should ponder over their available lenders options before deciding on the most suitable one. Since there are a variety of sources available, do your homework, compare your options, and go with the one that is most suitable for your specific situation.

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