What are the differences between a real estate agent and a mortgage broker?

What are the differences between a real estate agent and a mortgage broker?

Welcome to Homebuyer’s School brought to you by Brookfield Residential Hi everyone, and welcome to another
episode of Homebuyer’s School. Today I’m joined by Kevin French with Remax Realty, and today
the question that we’re gonna ask is “What’s the difference between a real
estate agent and a mortgage broker?” So Kevin, I have got this question a
lot some people confuse the role so what exactly is the difference
and what do they do? So a mortgage broker is typically gonna
help you set your budget for the property that you’re looking for and
then work with the lenders to get you your financing, as a real estate
professional is going to work with you to find the home that you’re looking for,
the property that meets your needs and within the budget that the mortgage
broker has set for you. Okay and what is the order
that you normally talk to them? Would you talk to a mortgage broker first,
the real estate agent first? Either or, you could
contact me first but typically I work with the mortgage broker first
after you’ve contacted the real estate professional they might put you in
contact with the mortgage broker and after you’ve met with the mortgage
broker, they’ll give you your budget that you’re working within and then you can
go back to the agent and then you can start shopping from there. Do the real estate agent, mortgage
broker, usually talk to each other? Yeah, they typically work together so you’ll end up with a mortgage broker
that works closely with a handful of agents and vice versa and then they sort
of form a bit of a team and then they get referred to the person that is
best for your needs. So if you had a mortgage broker that was better with new
Canadians, versus somebody that was better with a refinance, versus some
people particularly like with the banks such as Royal Bank or TD and then that
person would be referred back to the mortgage advisor that works
with that corporation. Are there mortgage brokers
who are real estate agents? Yeah, yes there are.
Are there? So would you- is it more of a field in
your recommendation, do you you go with someone who specializes in
both? Or is it somebody who normally they would pick a mortgage broker
and then a real estate agent? Typically it’s best to keep them both
separate if you have two different people working on two different
things that way there’s no blurred lines anywhere. Is there a- so for example, a
mortgage broker and real estate agent, do they work for the same
company sometimes? Or would you go with one company
that has both to keep it easy? To make it easy? Yeah that’s fine either way.
The mortgage broker is going to be acting on your behalf for the financing and the real estate
agent is going to be acting on your behalf for funding the property so
they might happen to work in the same office or in the same building
and have partnerships with- on a higher level but that’s fine. Okay, and can you see any other benefits
of using an agent and a broker? If you, well first of all if
you’re going to the broker, they’re shopping for you and they’re getting you
the best rate. If you’re shopping with one of the Big Five in that instance
then your work you’re working with somebody who works for corporation. So
they’re working within the confines of that set of rules whereas a mortgage
broker is opening the doors up to maybe 20, 30 different lenders. And who are the Big Five again? Royal Bank, CIBC, Scotia Bank,
TD and BMO. Oh great, perfect. Do you have
anything else to add? No, I’m good. Awesome, well thank you very much.
Thank you everyone for joining us and we’ll catch you next time! That’s another edition of Homebuyer’s School. Tune in next time for more expert tips and tricks, and visit homebuyersschool.ca to bring you one step closer to finding your dream home. As with everything, it would be great if you like and share our videos. Also please let us know if you have any home buying questions you want us to answer.

2 thoughts on “What are the differences between a real estate agent and a mortgage broker?

  1. Awesome questions, very helpful my friend, thank you 🙏🏽

  2. But the bigger question, who makes more money?

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