(416) 572-1016
info@myhometoronto.com
624 King St West, Toronto
Ontario M5V 1M7
What Is a Mortgage Broker?
A mortgage broker is an intermediary who brings mortgage borrowers and mortgage lenders together, but who does not use their own funds to originate mortgages. A mortgage broker helps borrowers connect with lenders and seeks out the best fit in terms of the borrower’s financial situation and interest-rate needs. The mortgage broker also gathers paperwork from the borrower and passes that paperwork along to a mortgage lender for underwriting and approval purposes. The broker earns a commission from either the borrower, the lender, or both at closing.
A mortgage broker should not be confused with a mortgage banker, which closes and funds a mortgage with its own funds.
Key takeaways
- A mortgage broker is a financial intermediary who matches home borrowers with potential lenders in order to obtain the best possible mortgage terms for the borrower.
- A mortgage broker can save a borrower time and effort during the application process, and potentially a lot of money over the life of the loan.
- Mortgage brokers earn commissions, known as origination fees, based on the size of the loan, and may work independently or as en employee of a larger mortgage brokerage firm.