The Mortgage Broker

A mortgage broker in Quebec must have a license issued by the Autorité des Marchés Financiers (AMF). An individual without a license issued by the AMF cannot represent, advise, or assist you in obtaining a mortgage financing. Therefore, it is recommended that you verify whether this individual holds a license issued by the AMF. The advice and solutions offered may not be in your best interest. See the Protégez-Vous article.

Here’s the link so you can check whether the mortgage broker has a valid license: AMF – Register of companies and individuals authorized to practice.

Please note, this does not apply to certain professionals such as mortgage specialists / mortgage development managers who are employees of a financial institution (e.g., TD Bank, Desjardins, …).

What is a Mortgage Specialist / Mortgage Development Manager?

A mortgage specialist or mortgage development manager (MDM) is an employee of a financial institution. They can only advise and recommend products from their financial institution. So, they cannot act as an intermediary between you and another financial institution. The mortgage specialist is only knowledgeable about the credit policies and products offered by their employer. Therefore, they do not require a license issued by the AMF since they only refer financing requests to their financial institution.

Mortgage broker or Mortgage specialist, which one to choose?

A mortgage broker is impartial and is not tied to a specific financial institution. They have in-depth knowledge of the types of mortgage financing offered by various lenders. After analyzing your needs and financial situation, the mortgage broker presents you with solutions and then represents you to lenders to obtain financing that meets your criteria.

However, a mortgage specialist can only offer products from their financial institution. Furthermore, a mortgage specialist / MDM has annual targets and related products to recommend, typically receiving a commission. This raises questions about their impartiality in their recommendations.

As for the remuneration of a mortgage broker, it is usually done through commission, paid by the lender upon the disbursement of the mortgage. The commission depends on the term, the granted rate, and the amount of the mortgage loan. Some institutions also offer incentive compensation programs such as points and volume bonuses.

The main goal of a mortgage broker is to find financing tailored to your needs and financial situation, regardless of the compensation they will receive from the lender. Thus, they will present you with multiple financing offers from lenders that match your financial requirements. For example, some financial institutions do not consider family allowances.

However, for certain lenders or types of financing, such as commercial financing, the broker may not be compensated by the lender. In these cases, the mortgage broker will need to agree with the client on service fees, similar to a real estate broker who agrees with their client on their fees.

When it comes to my services, Rui Alberto Maia, transparency and integrity are fundamental values. During our conversation, I will clearly inform you if any mortgage brokerage fees are applicable.” Furthermore, for conventional or insured mortgage financing, my clients typically do not incur brokerage fees.