Since May 1st, 2010, hypothecary brokerage is regulated and governed by the Real-Estate Brokerage Act, to ensure the protection of the public. Any hypothecary broker must maintain professional civil liability insurance, and abide by its code of ethics.
Its role is to give advice to purchasers and owners, on the best hypothecary products available in the market. He should be better able to do so than most, as this task is not a simple matter. It implies methodical and rigorous research to ensure that the best terms and conditions are offered and that you will be able to take advantage of them.
A key person
A true intermediary between you and the lenders (financial institution or private lender), the hypothecary broker will unearth the hypothecary loan needed, after collecting the relevant information on your financial situation. Furthermore, using his knowledge of the hypothecary market, he will be able to give sound advice at each step of the research process.
Furthermore, the hypothecary broker is in a position to have the financial institutions bid one against another, allowing him to negotiate the most advantageous lending terms and conditions. His main objective is to help you save time and money and to obtain:
The best hypothecary rates from financial institutions;
The lowest cost for loan insurance;
The lowest opening of file fees.
His remuneration is generally paid by the financial institution, consequently he should not charge a fee for his services.
WHAT YOU SHOULD KNOW! The lending terms and conditions offered by a hypothecary broker are generally more advantageous than those you will be able to negotiate directly with your banker. You should know that brokerage agencies, using the services of hypothecary brokers, benefit most often than not, from rates lower than those proposed by financial institutions to their own clients.
WARNING! The hypothecary broker is compelled to protect the confidentiality of your personal information.
CONSULT THE PUBLICATION: Purchase and sale of a condo: Everything you should know, at pages 282 and following.