Mortgage Brokers Growing In Popularity

By Bruce on September 11, 2008 7:34 AM in Mortgage Brokers | | Comments (0)

Ultimately, there is no doubt that mortgage brokers have yet to penetrate the Canadian mortgage market to the same extent as their southern cousins in the US. Some borrowers likely believe this is a positive, as a result of negative media coverage of the mortgage industry.

What many borrowers are not aware of, however, is the two-tiered lending system maintained by the Canadian mortgage lending oligopoly, which continues to post high sticker-prices on their loans to provide for negotiating room. With a penetration rate of 25+%, and an increasing average quotation rate by Canadian consumers, there is no doubt that the mortgage broker profession is helping to reduce borrowing costs for home owners and buyers alike.

With today's interest rate spread of approximately 1.75% (the different between top mortgage broker interest rates and the equivalent term's posted rate), it is important as ever to shop around on your bank and make sure that they are working to earn your business.

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