Does anybody know Canadian homeowners who dealt with a mortgage agent in Canada? | Your stories | Discussion forum

I'm not taking your survey, but I did use a mortgage agent for a recent purchase. While agents will say they "don't work for the banks" and they will get you the "best deal", in reality agents will send you to whoever gives the agent the best kickbacks. The supposed advantage of an agent is that they can "negotiate" the best deal for you, but in reality there is not much negotiating heppening. Agents get prefered rates from the lenders, and the agent simply selects the lender that provides the best kickbacks from a basket of lenders who will lend to a given borrower based on the borrower's net worth, income, and employment status/history. If you are an absolute greenhorn and have never bought a house before, a mortgage agent can provide some very basic information, but its really nothing that you couldn't find yourself by doing basic research. If your financial status is borderline, an agent can hook you up with non-traditional lenders who would be willing to lend to you where others won't. But at the end of the day, if your financial status is good and you have confidence and some homebuying experience, you don't really need an agent.

guest said:

I'm not taking your survey, but I did use a mortgage agent for a recent purchase. While agents will say they "don't work for the banks" and they will get you the "best deal", in reality agents will send you to whoever gives the agent the best kickbacks. The supposed advantage of an agent is that they can "negotiate" the best deal for you, but in reality there is not much negotiating heppening. Agents get prefered rates from the lenders, and the agent simply selects the lender that provides the best kickbacks from a basket of lenders who will lend to a given borrower based on the borrower's net worth, income, and employment status/history. If you are an absolute greenhorn and have never bought a house before, a mortgage agent can provide some very basic information, but its really nothing that you couldn't find yourself by doing basic research. If your financial status is borderline, an agent can hook you up with non-traditional lenders who would be willing to lend to you where others won't. But at the end of the day, if your financial status is good and you have confidence and some homebuying experience, you don't really need an agent.

Similar methods used by investment dealers too.