Lethbridge Mortgage FAQ

How much do mortgage brokers charge in Alberta?

• We are FREE
• Banks pay us...but you can pay us if you want 😉 Kidding, please don't, we get paid a referral fee/commission from the bank or lender we send your file to.
• When is it NOT free and fees occur? It typically applies in 3 scenarios:
  • Mortgage planning session(s) with an understanding that no mortgage is needed at the end. We may charge for this work if there is never the need for a mortgage and it is only for planning purposes.
  • Private Mortgages require a fee due to no payment from the lending company to the mortgage brokerage. We need to charge a fee in order to get compensated... Sorry! 🙂
  • Commercial lending fees vary based on loan details, mortgage size, building type, etc.

Is it worth talking to a mortgage broker?

I sure hope we are worth it!
Yes, we are worth it and are confident that our advice is second to none. We believe that our clients are the wealthiest mortgage clients because of our mortgage planning and process. We also know that a mortgage broker has the ability to create a financing experience by loving what we do and partnering with the best banks and lenders in Canada.
We would love to prove it to you!

Who usually pays a mortgage broker fees?

90% of the time, the bank covers the fees. The rest of the time, it is up to the client to cover those costs.

What's the difference between a mortgage advisor and a mortgage broker?

Same same, in common real estate conversations.
Technically in our world, there is only one mortgage broker in a mortgage brokerage. The "broker" is the manager or owner of the mortgage brokerage and is hence called, the Mortgage Broker. But the term is typically synonymous with mortgage agent, associate, broker, advisor, and mortgage professional. It is all one and the same to the client.

Are realtor fees negotiable in Alberta?

Yes, absolutely. There is a wide range of fees these days. 1% all the way to 5% depending on the location, house price and the business model of the real estate brokerage you choose.

Do mortgage brokers get paid more with a variable rate?

No, fixed rates and variable rates pay mortgage brokers the same.
The commission of mortgage brokers is very standardized and regulated so there is not too much incentive to "sell" one product over another. Fun fact, it is not variable vs fixed that pays more or less to brokers; more commission is for more years. For example a 5 year mortgage pays more than a 2 year mortgage.

Why a mortgage broker is better than a bank

Like any service industry, at the end of the day it comes down to people. I will list some positives on why a broker is better, but know that there are good mortgage brokers and bad mortgage brokers. Just like there are good mechanics and good painters, and good realtors. Find a mortgage broker that you like and trust, and that is the mortgage broker for you!
Once you have found that person, then this list will be true:

• Advice is custom and not lopsided. We don't have a head office at a single bank or lender that encourages us to sell one particular product or a bonus to sell one thing over another. We get to curate as a mortgage professional what is best for our client.
• Variety of banks, lenders and credit unions. We have lots of different options to choose from, more than just a single bank or lender. There are dozens of options per client situation for us to choose and recommend.
• Interest rate competition. We have lots of lenders and banks to choose from, which means competition amongst themselves to provide better rates and better service. They are all competing for the mortgage brokers book of business and try to earn it, in order for us to refer our clients to them. Our clients win in the end.
• You are our client. You the home owner is our customer, not the bank, not head office, etc. You are the one we care about and what to impress and take care of. We will fight for your approval and hustle whenever possible.