Many people may not realize it, but two things are important to understand about home loans (Intelligence Hypoth?caire).

1) Mortgage consultants get their commission based on the size of the mortgage, not on the interest rate and

2) Brokers often channel all loans to one lender to get a volume benefit.

If you have been curious about how a mortgage broker (Intelligence Hypothecaire) is paid, this will answer your question. Knowing how a person in a transaction is reimbursed is important, since it will lend transparency to the transaction.

Brokers have to earn a living, just as the other professionals you work with, but they are paid by the bank that they place the loan (Intelligence Hypotheque) with. This payment is based solely on the size of the loan, not on the interest earned on the loan. A $200,000 loan will earn twice as much in commissions as a $100,000 loan.) So there is no incentive for the broker to increase the rate, and he has no influence over the size of the mortgage.

There are certain situations where the fee can be increased. Certain factors can change the fee such as

1) the term of the home loan hypotheque

2) certain variable rate mortgage loans

3) the length of time of the mortgage guarantee

So there is no value or incentive for a mortgage broker (courtier hypothecaire) to increase the interest rate on a mortgage. This may be a different case from the special bonus structures that some banks offer employees. (Be sure to read ?Will my bank offer a better rate than a broker??, if you want to know more about this.)

Mortgage consultants can, however, improve their fees by working with one lending institution. Banks frequently offer special programs whereby a broker will earn added commission based on the volume of mortgages he brings to the bank. It is a significant amount, ranging from 20% to 25% over the original commission.

Smaller brokers are influenced by this incentive, but it has no effect on larger mortgage consultants. Brokers such as Mortgage Intelligence, that originated over $8 billion in loans in 2005, or Multi-Pret/Mortgage Alliance with over $5 billion in home loans easily reach the limit on all volume business, and so are not tempted to work with one bank.

Now you have two more pieces of information regarding mortgages and mortgage consultants that will help you find the best mortgage for you:

-Brokers earn their fees by the size of the loan; interest rates do not have any impact on the fee of a broker.

-Large brokers have the freedom to examine the loan offerings of all lending institutions, since they do not have to be concerned about volume commissions; this gives the borrower the best choice of lenders to choose from.