Welcome to the second episode in our mortgage myths series. Elissa Fesyk once again quizzes Jason Scott, and this time the subject is how mortgage brokers make a living doing what they do.
When Jason gets paid, 99% of the time it is by the lender, not the client. Why do lenders want to work with brokers? Brokers are outsourced lead generators for them; they don’t have to pay salary or benefits. In exchange, they pay based on size and length of mortgage.
What matters to Jason is getting the client approved in a smooth and painless way. From a client’s perspective, Jason’s best interest is to make a great situation for them to keep building his own business. Sadly, there are also shady mortgage brokers out there. Look out for interest rates and do your research before you commit. If in doubt, look to the Real Estate Council of Alberta for advice.