5 Facts about Working with a Mortgage Broker

Are you planning to buy a new home? Do you want to take a loan for the house? Have you heard about mortgage brokers?

Your real estate agent or some of your friends, who have bought a house, might have advised you to take help of the mortgage broker. But do you really know the difference between a mortgage broker and the bank loan officer? To bridge this gap, the mortgage broker in Toronto has answered some of the frequently asked questions about this subject. Check the answers below to know more about the mortgage brokers.

mortgage broker toronto

What Is a Mortgage Broker?

The shortest answer is a middleman.

A mortgage broker vets different banks on your behalf and checks which of the loan program suits you best. They have vast experience. Thus, they can find the right type of loan charging least interest faster than you ever could. Their line of work demands them to get familiar with a bevy of reliable lenders. Thus, contacting one of the experienced mortgage brokers can make your financial life fairly smooth. The mortgage broker in Toronto, however, warns you to check the credential of the broker before employing. Every validated mortgage professional should have a license. Their job is to do all the legwork for you and to smoothen all the glitches by getting in touch with the lending bank and the real estate agent on time.

mortgage broker

What Is the Payment Procedure?

Like every other middleman, mortgage brokers charge commission as remuneration. Generally, the charge is about 1% of the borrowing amount. The amount is payable at the closing of the deal by the borrower. Sometimes the brokers offer no-cost leans to you. In this case, you won’t be paying any money to the broker. After the lending deal is over, the lender will pay the broker. As you don’t have to pay anything from your pocket, you might have to hand over more money as interest to the lender. Want better deals? Get in touch with a mortgage broker in Toronto.

Why Should I Use Mortgage Brokers?

The primary point is that the mortgage brokers work as your personal financial attendant and complete all the legwork for you. The brokers are connected with multiple lenders and banks. Using that connection, they can try to waive some of the fees. This one-to-one attention of mortgage brokers will never be given by any bank loan officer. Some of the banks work exclusively with the mortgage brokers, like the mortgage broker in Toronto. Depending on the relationship between the lender and the broker you might avail some of the loan products that might not be available to you otherwise.

toronto mortgage broker

What Are the Drawbacks?

The payment can be considered as the only drawback. Let’s say you are borrowing $300,000; then you have to give the broker at least $3000 as payment. You can try to search the; lending market on your own, but the brokers can comb through the market and present the best option for you.

As you have answers to all important questions, the only step that remains is to appoint a good mortgage broker. Interview at least three of them and check their credentials properly. To avoid all the hassles, call the mortgage broker in Toronto now.

MERCHANT ADVANCE: Why should businesses take it?

Any person who is into running a small business will know the difficulties of funding money at the required time. But then, there are some changes put forth recently in relation to that where there are certainly viable options provided for small businesses in terms of financial aspects. This is nothing but the merchant advance which comes with the advance cash option. They also provide better flexibility and the chances of getting approved for the loans are also high here when compared to the bank loan. Many people are not aware of the merchant advance option and the benefits it offers.

merchant cash advance


Basically merchant advance is the best option for people who are starting their business. This is simply an advance on future sales which works as the capital for the business to get it started. Since the turnaround time for the cash advance is quick and since the loans will be approved much faster and easier, this becomes one of the great options when it comes to looking for cash options at the start of the business.

Many people have started to look for this option after realizing the benefits of it and have moved away from the process of bank loans.

How to Repay?

All this seems fine but one might wonder how to repay the merchant advance. When it comes to this point this loan is considered unique. This is because it is repaid with the help of future sales. The time of repayment will differ based on the percentage of interest and also on the amount which is borrowed. The general time limit which is taken is from four to 18 months in order to repay the loan. Due to this fact one should go for the correct merchant. That will help in getting the loan for the specific needs and for the specific time.

How is it determined?

Since the whole loan is based on the future sales aspect the whole loan is quite flexible. In case the business goes through a time period where the usual sales are not happening and the required revenue is not attained, then the loan repayment amount will be considerably reduced based on the sale amount. And in the situations where the business is performing well and the sales are happening well then due to the increase in revenue, the required amount of repayment will be deducted accordingly.

merchant advance

Who prefers?

Due to these options, many merchants prefer this type of loan. People who are in the retail sector who have a sales curve which is not steady prefer to go for these loans. As the festival seasons will get higher revenue and the usual days might not yield much this loan seems better for them. Apart from that the restaurant business also looks for these loans. Sometimes there might be equipment failures and there are cases where unexpected expenses might occur. During these times this loan will come in handy. Medical industry also goes by this loan as it will cover the cost of cozy medical instruments.