Mortgage Blog

The Mortgage Players

January 1, 2015 | Posted by: Calum Ross

Mortgage Advisor

Since the early 1990s, the use of mortgage brokers – technically independent mortgage agents/advisors who work for a registered Mortgage Broker, has gained great popularity as most of Canada’s banks began to use this channel to acquire mortgage clients, while at the same time we saw the emergence of several new lenders in the mortgage market introducing innovative distribution methods and a variety of mortgage product offerings previously unavailable.

Many of these new ‘wholesale’ lenders (as commonly referred to) didn’t have the expensive branch networks and large overheads in place with the existing dominant mortgage lenders. Instead, they relied solely on third parties and benefited from a business model that allowed them to pay third parties on a production-only basis – providing the ultimate cost outsourcing.

Realtor™

Finding a home to purchase is a big job and a realtor can make it a lot easier by doing a good deal of searching for you.

The role of the realtor is to screen available properties, identify those that most closely meet your requirements, and arrange to view them with you. Ideally, your realtor is more than a sales agent. He or she should serve as a resource to provide valuable advice and help you make an informed purchase decision.

The Appraiser

Appraisers assess property value for the lender.

When you purchase a property it’s important for the lender to be satisfied that the price reflects the property’s true market value. An appraiser is an officially accredited valuator who is hired to conduct an inspection of the property for the lender to assess and certify its value.

Provides the lender an accredited opinion about the market value of the property being purchased, which is compared to the purchase amount

The Builder’s Representative

Your information resource when you buy a newly constructed home from a builder.

Should you decide to purchase a newly constructed home from a Builder, then you will probably deal with a builder’s representative who arranges the sale of new homes to the buying public.

- Provides information to buyers on house models, lots, costs of purchasing, municipal procedures and requirements, New Home Warranty programs, and all other related features of the property
- May help you select the interior finishes and arrange upgrades, if appropriate

Note: Although Builder’s Representatives are governed by regular consumer law, their duty is to the builder and they are in fact the Seller’s Agent.

The Home Inspector

The Home Inspector acts as your extra pair of eyes, able to see things about a property that may not be visible to you.

If you are buying a resale home, it’s always advisable to have it checked by a Home Inspector as a condition of purchase. This individual (not requiring provincial licensing in most cases) will inspect the property for major deficiencies, which may not always be apparent. The results are presented in a written Home Inspection Report.

- Identifies the soundness of the structure and any improvements that have been made
- Notes any specific deficiencies and their impact on the value of the property
- Estimates the cost to correct any identified deficiencies

The Lawyer

Your lawyer makes sure that the property you purchase is legally yours and comes with no strings attached.

When you buy property you are not just buying the land and building, you are also buying the legal rights of ownership so you need to be certain that no other party has a claim to them. Your lawyer will confirm that there are no legal obstacles to your purchase and help it proceed smoothly.

- Conducts a title search to ensure that the seller is the true owner of the property, makes sure that the current or proposed occupancy usage conforms to local by-laws
- Obtains all necessary documentation including a compliance letter acknowledging that no outstanding liens (legal claims) or work orders are in effect and a Tax Department release verifying that property taxes are up to date
- Handles the transfer of ownership from seller to buyer and the registration of the mortgage on title Ensures arrangements are in place for funds to be available for closing
- Coordinates with lenders the setup of legal documents for any mortgage security
- Ensures that all mortgage terms and conditions are met, and that title is clear in order to make undertakings to lender(s). May obtain title insurance on your behalf if there is any issue surrounding title that may cause a claim or work order of some kind in the future
- Arranges with you the signing of legal documents and submission of remaining funds not provided by the Mortgage Lender(s)
- Coordinates closing of the purchase transaction with the lawyer(s) for the seller of the property

The Mortgage Lender

The financial backer in your real estate venture.

In today’s mortgage market it pays to shop around because there are many lenders and different financing options available. You can research this yourself, or use a Mortgage Broker to help you. As the party providing the funding, the lender will want to be sure that you are a worthy credit risk and that the mortgage you are requesting corresponds to the value of the property you intend to purchase.

- Sets out the legally stipulated lending criteria that you need to meet to qualify for a loan
- Provides you with the money to purchase the property

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