Capital Direct Mortgage Brokers

The difference between a mortgage broker and a personal banker

If you live in Toronto, Mississauga, Barrie or Scarborough and are looking for a mortgage or home equity loan, you might choose to go to your local bank or other large Ontario lending institution. Alternatively, you might opt to arrange the mortgage or home equity financing through a mortgage broker. So what are the inherent differences in the two methods of obtaining a mortgage?

Bank Loan Officers
The loan officers at a bank, credit union or other lending institution are employees whose job it is to sell and process mortgages, equity financing and other loans originating with the institution who employs them. In dealing with a bank you only deal with one lender. CIBC loan officers are not going to recommend BOM products or those of any other competitor. So while each 'Big Bank' may have a wide variety of loans types in their portfolio, all are the financial products of that particular lender.

Mortgage Brokers
A mortgage broker such as Capital Direct is an independent contractor who works with multiple lenders that includes major banks, trust companies, credit unions and finance companies.

The mortgage broker is not an employee, but a freelance agent. A mortgage broker counsels you on the loans available from different lenders, takes your application, and usually processes the loan which involves putting together the complete file of information about your transaction including the credit report, appraisal, verification of your employment and assets, and so on. And it is the lender who shows up at the closing table with the money, not the mortgage broker.

A mortgage broker receives daily updates on interest rate nationwide. Your mortgage can be obtained from an institution with the most favourable rate - this could be locally in Toronto, Mississauga, Barrie or Scarborough, provincially anywhere in Ontario or anywhere Canada. As the mortgage broker is doing the 'leg-work', you don't have to spend the time and energy searching for the lowest rate yourself.

An additional advantage of working with a mortgage broker rather than a single institution is that an established mortgage broker such as Capital Direct conducts a high volume of business with several institutions. The result is that the mortgage broker may receive additional benefits, such as lower interest rate and fast approvals that can benefit the mortgage borrower. Finally, a mortgage broker can often find a lender who will make mortgage or home equity loans that a bank refuses.

Housing market in Toronto, Mississauga, Barrie and Scarborough

Record breaking year in Greater Toronto
Toronto, Ontario and the surrounding municipalities of Mississauga, Barrie and Scarborough continued to expand well into the tenth consecutive year, attracting buyers interested in both new and re-sale housing. The Province of Ontario designated the City of Barrie as a Growth Centre, and buyers coming to the area could still expect to find a wide range of housing options at affordable prices with an average Barrie area price range that is at least $125,000 less than the Greater Toronto Area market.

Record breaking year in Toronto Ontario
The Greater Ontario area, which currently includes Mississauga, Barrie and Scarborough, continues to expand, attracting buyers interested in both new and re-sale housing. The Province of Ontario designated the City of Barrie as a Growth Centre, and buyers coming to the area could still expect to find a wide range of housing options at affordable prices with an average Barrie area price range that is at least $125,000 less than the Greater Toronto Area market.

Toronto Ontario real estate sales figures
The Ontario Real Estate Board says 2006 began with a bang in the Toronto real estate market, with activity up 10 per cent compared to 2005. Mississauga was up seven per cent over the figure recorded in January of 2005.

Early 2006
The Toronto Real Estate Board says 2006 began with a bang in the Toronto real estate market, with activity up 10 per cent compared to 2005. Mississauga was up seven per cent over the figure recorded in January of 2005.

Consumer confidence, after taking a hit in September 2005 when fuel costs rose following the hurricanes, has rebounded and CMHC expects consumer spending to strengthen. Employment is forecast to grow by 1.7 per cent this year and 1.4 per cent in 2007, and the unemployment rate is expected to fall to 6.6 per cent in 2006.

Across Canada, home markets have set new sales records for five consecutive years, but Canada mortgage and Housing Corporation says that streak will end this year. Four consecutive years of strong price growth combined with rising mortgage rates in 2006 and 2007 will cause demand for existing homes to ease below last year's record-setting pace. An increasing number of new listings will give existing home buyers more choice, thereby moving the existing home market toward more balanced conditions.

In the Greater Toronto market, however, one industry analyst forecasts that existing home sales will remain near record levels this year. Steady employment growth, in-migration and reasonable borrowing costs will continue to fuel strong ownership demand going forward into 2006