If a mortgage broker is arranging your private mortgage for you, you can expect to pay a broker fee, since in this instance the lender does not compensate the mortgage broker for their work.
These fees are deducted from the mortgage money provided at the time of closing. You only pay these fees if you get your money. A responsible mortgage professional will advise you of all these costs upfront so that there are no surprises. This way, you can make your decision as to whether to proceed, with all the facts in front of you.
Typically, brokerage fees are 1-2%, depending on how complicated the financing is and the amount you borrow. The brokerage fees vary from broker to broker and from loan to loan.
Factors mortgage brokers consider are:
- The complexity and level of effort they anticipate are involved to fund your mortgage.
- The size of your mortgage. The smaller your mortgage, the larger the fee may seem like a percentage of the loan amount, and the larger the mortgage, potentially the smaller the fee may seem like a percentage of the loan amount.
In some instances, if the amount of borrowed money is small, a broker may charge you a minimum fee instead of the percentage.
At SAN Mortgages, we can help you find the right private lender to work with. We have a large network of experienced mortgage lending partners, and we can help you find the lender to work with you. We’ll help you gather the information you do need and do all the shopping and comparison for you. Then we’ll present you with the best options and walk you through deciding which would be best for your life. You won’t just see the “best” mortgage offer- you’ll see all the options we have to offer so that you can compare the benefits and challenges of each and weigh them against your own goals and circumstances.
And if your situation changes in the future, we can help you refinance for a better interest rate, using your new income verification or credit to access lenders that may not have been available to you before.
All you need to do in this case is contact us to review your options. At SAN Mortgages, we have financial experts who will recommend the best solution to your unique situation. Once we determine the best approach, we will then reach out to our network of over 50 financial institutions to discover the best rate for your second mortgage, refinance or loan. You will always have the best possible rate and financing options we can provide so that you will get the most advantageous mortgage rates in Ontario.
Contact SAN Mortgages at 1-855-SAN RATE (726-7283) or by e-mail Online to reach a mortgage expert who will help you organize your information, assess your needs and get you the best mortgage rates suitable to your circumstances.