Friday, May 24, 2024

What Is A Mortgage Advisor

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Canada Life Mortgage Protection Review

The COMPLETE guide to becoming a Mortgage Advisor!

Canada Lifes My Term features a unique rider that is particularly useful for business owners. While youre protecting your mortgage, you can also benefit from easier access to more insurance coverage with this rider. The Business Growth Protection rider lets business owners purchase additional coverage when their share of the business grows. The My Term policy gives you the flexibility to choose any term length from 5 to 50 years, so you can match it exactly to your mortgage term. Add on an optional childs term life insurance rider and you can create a comprehensive financial plan that includes servicing debt obligations, such as your mortgage.

  • Available Term Lengths: Flexible terms between 5 and 50 years
  • Available Term Types: Level coverage. Single and joint coverage available
  • Maximum Amount of Coverage: $20,000,000
  • Renewability: Yes. Renewable annually until/unless cancelled. Premiums are guaranteed
  • Convertibility: Yes. Convertible up to age 70


A Broker May Not Source The Best Deal For You

Many home buyers simply assume that a broker can deliver a better deal than they could get on their own, but this is not always the case. Some lenders may offer home buyers the very same terms and rates that they offer mortgage brokers .

It never hurts to shop around on your own to see if your broker is really offering you a great deal. As mentioned earlier, using a mortgage calculator is an easy way to fact check whether you can find better options.

First Time Buyer Mortgages

Okay, so first time buyer mortgages should be fairly straight-forward to arrange unless you also fall into one of the categories already mentioned. However, if youre a first time buyer, chances are youre completely new to the mortgage application process. A mortgage broker can simplify this for you, talking you through your options and breaking down everything thats needed so you can get on with taking your first step onto the property ladder.

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Other Reasons To Use An Adviser

  • Theyll check your finances to make sure you are likely to meet the individual lenders lending and affordability criteria.
  • They might have exclusive deals with lenders, not otherwise available.
  • They often help you complete the paperwork, so your application should be dealt with faster.
  • Theyll help you take all the costs and features of the mortgage into account, beyond the interest rate.
  • They should only recommend an appropriate mortgage for you and will tell you which ones youre likely to get.

Its also a good idea to choose a firm thats a member of the Association of Mortgage Intermediaries , the professional body for mortgage intermediary firms.

Find out more on the AMI website


Mortgage advisers might charge you for their service, depending on the product you choose or the value of the mortgage. This charge could be a flat rate or hourly rate, or a percentage of the amount you borrow.

Others will be free to you but receive commission from the lender.

Some charge fees and receive commission, but you should be told how an adviser will be paid and all the costs involved in providing the advice.

The fee can be added to the mortgage, but you have to agree to this first and you will pay interest on the fee as well as the rest of the mortgage, until the whole mortgage is paid off.

When your adviser makes a recommendation, they must give you a mortgage illustration document.

Assumption Mortgage Protection Review

How to Become a Mortgage Advisor

Assumption Lifes Flexterm is a viable option if you want coverage in a flash and without having to go through the usual life insurance medical exam. It offers traditional life insurance policies that are underwritten, but also simplified insurance that you can get approved for much more quickly. Just keep in mind that simplified insurance premiums are often significantly higher than fully underwritten policies.

Assumption offers terms ranging from 10 to 35 years, as well as a decreasing option that you can match with your mortgage. If you decide to go through the underwriting process, you can also access option riders for disability income, critical illness, and more, plus a built-in extreme disability benefit as a cherry on top.

  • Available Term Lengths: 10, 15, 20, 25, 30, or 35 years
  • Available Term Types: Level and decreasing coverages. Single or joint coverage available
  • Maximum Amount of Coverage: $10,000,000
  • Renewability: Yes. Renewable every 10, 15, 20, 25, 30, or 35 years, up to age 85. No medical required up to certain limits. Premiums are guaranteed
  • Convertibility: Yes. Convertible up to age 75

Assumption Lifes simplified term life option is attractive if you want something quick to cover your mortgage. But underwritten plans definitely take the cake when it comes to premiums, riders, and benefits.


Best For Financial Strength

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Recent Changes To How Mortgage Advisors Work

Following a consultation, the Financial Conduct Authority have implemented a few changes to how mortgage advice works. The most important thing to know is that a mortgage advisor will be asked to record a reason if they offered you a mortgage that wasn’t the cheapest one available. There are all sorts of reasons why a more expensive mortgage may be a better fit, but they have to give an explanation.

When To See A Mortgage Adviser

Its important to see a mortgage adviser at the start of your mortgage journey whether its your first mortgage or you’re looking to re-mortgage. It will save you a lot of time and effort in the long run.

Its good idea to speak to a few different firms to see whats on offer and to compare fees.

There are two main types of mortgage advisers.

Mortgage advisers connected directly to lenders usually only recommend mortgages from that specific lender.

Mortgage brokers, or independent financial advisers, who can look at a range of mortgages from different lenders. Some might even check the whole market offering you a wider range of products.

It makes sense to choose a broker or adviser providing a whole of market service. This means they can choose from the largest number of lenders and mortgages available.

However, even whole of market advisers dont cover everything and there are still some merits of going directly to the lender for your mortgage. Some lenders will have exclusive deals only available if you go to them directly which can help you avoid paying any up front broker fees.

Firms offering mortgage advice must be regulated and authorised by the Financial Conduct Authority . Details of all regulated firms are held on the FCAs Register.

Check the firm you decide to deal with is on the FCA register on the FCA website

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Writing A Covering Letter

Writing a covering letter seems like a long arduous process, however, you can create a template to assist each job application, by using an initial skeleton copy and then tailoring specifically to each vacancy you apply for. To boost your letter, undertake research and discuss some aspects of the company that appeal to you and explain why.

How Do You Find A Mortgage Broker

What Is It Like Being A Bond Street Mortgage Advisor?

A simple online search will return you lots of mortgage brokers hungry for your business â but how do you know which is right for you? A good start is to ask for recommendations from friends whoâve moved to the same area.

Donât feel you have to go with the first broker you talk to, and youâre in no way obliged to use the broker an estate agent recommends to you, even if you buy your property through them. Just remember before engaging any broker to ask three key questions:

  • âAre you independent and can you get me a mortgage from any UK lender?â Not all brokers have access to every mortgage â some are tied to specific lenders while others are âwhole of marketâ.
  • âDo you charge a fee and if so, how much and when do you take it?â As mentioned earlier, different brokers charge different fees in different ways, so make sure you know before you start.
  • âAre you properly qualified and on the Financial Services Register Checking that your broker is reputable is essential â the most recognised qualification is called CeMAP. If you get bad advice, you can go to the Financial Ombudsman â but before you can pursue the case with them, youâll usually be asked to open a complaint with the broker and wait for their final response.
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    How To Choose A Mortgage Broker

    • Start by making sure you understand what a mortgage broker does.
    • Then, ask friends, relatives, and business acquaintances for referrals.
    • Take a look at online reviews and check for complaints.
    • When meeting prospective brokers, get a feel for how much interest they have in helping you get the loan you need.
    • Ask about their experience, the precise help that they’ll provide, the fees they charge, and how they’re paid .
    • Also ask whether they can help you in particular, given your specific financial circumstances.

    Mortgage Advisor Pros And Cons

    So, what are the pros and cons of using a bank’s mortgage advisor as opposed to a ‘whole of market’ mortgage broker?

    Pro: no-cost advice

    The most obvious benefit of using a mortgage advisor at your bank is that their services will often be free to you, with the bank paying the advisor’s fees. You will get just as thorough a consultation with a bank’s mortgage advisor as with any other broker, it will just be limited to the bank’s mortgage options.

    Con: limited advice

    But, and this is a big but, as we said above, you could be missing out on a better deal with another lender, so, if you’re using the bank’s mortgage advice service, you’ll need to be pretty certain that you want a mortgage with them.

    You should also bear in mind that using the bank’s mortgage advisor does not guarantee you a mortgage approval.

    Before you commit to a mortgage with your bank, it’s worth at least having a look at what other options are out there, and with many online mortgage specialists now offering free online comparison tools, it won’t take up much of your time.

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    A Broker May Be Able To Manage Your Fees

    Several different types of fees can be involved in taking on a new mortgage or working with a new lender. These include origination fees, application fees, and appraisal fees. In some cases, mortgage brokers may be able to get lenders to waive some or all of these fees, which can save you hundreds to thousands of dollars.

    Below you’ll find mortgage offers available from our partners.

    Does Experian Have Mortgage Brokers I Can Talk To

    Mortgage Advice

    You can use Experian to compare mortgages from across the UK market. Once youâve found a mortgage you want to consider, you can ask for a callback from our partner, the mortgage broker firm London & Country. Theyâre fee-free and youâll get a dedicated mortgage broker who will help you throughout the journey.


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    Continue Your Education On Mortgage Lending

    Once you have your mortgage broker license, its your responsibility to keep up on the latest developments on mortgage lending in your area.

    To keep your license current, youll be required to take a certain number of hours of continuing education courses each year. Its similar to what accountants, doctors, and lawyers go through, and it ensures that you can do your job accurately and will give your clients the most up-to-date mortgage loan information.

    Brokering mortgages is a job that demands constant attention to the changing real estate and lending landscape.

    Benefits Of Using A Mortgage Broker

    An independent mortgage adviser is not restricted to any particular providers, and will act solely in your best interests. You can therefore be confident that the deal they recommend will be the best available mortgage for your circumstances. A mortgage adviser should also:

    • Explain the various mortgages available and the different types of deals
    • Advise you on how much you can afford to borrow
    • Have access to special mortgage deals that are not available on the open market
    • Help you prepare for your application to boost your chances of success
    • Be able to save you money overall by finding a mortgage with lower interest rates and fees

    Remember that every unsuccessful mortgage application may harm your chances of success next time around, as each refusal will appear on your credit record. Using a mortgage adviser will maximise your chances of being accepted first time.

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    How To Become A Mortgage Advisor

    The qualifications for this job include having strong math and interpersonal skills, as well as experience with the mortgage banking industry. You also need to pass a certification examination, typically given by your employer. It is important to have strong communication skills, both written and oral, and the ability to work independently. You need to be very detail-oriented, as part of your duties include dealing with large volumes of customer financial information and credit reporting. You also need to pass a background check and a have a good credit report.

    How Can I Determine How Much Mortgage I Can Afford

    The Pros and Cons of being a Mortgage Adviser in the UK

    How much mortgage you can afford is typically based on your debt-to-income ratio. For most lenders, the maximum DTI to get a conventional mortgage should be no more than 43%.

    To calculate your maximum mortgage payment, take your net income each month . Next, subtract monthly debt payments, including auto and student loan payments. Then, divide the result by 3. That amount is approximately how much you can afford in monthly mortgage payments.

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    Duties And Responsibilities Of A Mortgage Advisor

    To carry out the service, your day to day routine could involve dealing with Estate Agents, valuers and mortgage lenders, keeping up to date with the current market and law and working closely with your clients.

    As a Mortgage Advisor in a bank or building society, you would only sell your own companys mortgage products. If you worked for an Estate Agent or Mortgage Broker, you would offer mortgages from a range of companies. If you are an independent financial Advisor , you would advise on all types of financial products including mortgages.

    You also need to follow strict rules and guidelines from the Financial Services Authority , which make sure advisors act fairly and are qualified to give the right financial advice.

    How Loan Brokers Get Paid

    Unlike loan officers, mortgage brokers dont work for banks. They operate independently and must be licensed. They charge a fee for their service, which is paid by either you, the borrower, or the lender.

    The fee is a small percentage of the loan amount, generally between 1% and 2%. If you pay this fee, the dollar amount can be either added to the loan or paid upfront.

    This 1% to 2% of a loan may sound like a lot of money for you, or for the lender, to pay on top of the mortgage youre already committing to. Fees may vary, depending on the size or number of loans, but luckily, you shouldnt be stuck with any hidden fees.

    Loan brokers are required to disclose all fees upfront and can charge only that disclosed fee amount. Further, each fee should be itemized, and the broker should be ready to tell you, the borrower, exactly what each fee was for.

    When applying for a mortgage, its important to know exactly how much youll be paying in fees. Knowing what your mortgage broker fees will be upfront will be helpful.

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    What Qualification Do You Need To Become A Mortgage Advisor

    In the UK to provide Mortgage Advice, you must have a qualification recognised by the Financial Conduct Authority . If you dont have a recognised qualification, you cant legally provide regulated Mortgage Advice in the UK.

    Although there are many mortgage qualifications the two main qualifications that are recognised as industry standards come from the two main Financial Services qualification providers the London Institute of Banking and Finance and the Chartered Insurance Institute . Both of these providers have an array of qualifications covering Mortgage Advice, Financial Advice, Paraplanning and more! We have covered most of these core qualifications on our blog and channel and we will reference any relevant in-depth content throughout this blog.

    Do I Know A Mortgage Broker I Can Trust

    Do You Need a Mortgage Broker?

    Since the harrowing ordeal of the Global Financial Crisis, mortgage brokers still havent quite lost the bad rap they gained from the subprime mortgage disaster. But the survival of this industry despite the stricter regulations shows how necessary this service is to many customers.

    Since you are reading through this article and/or already seriously thinking of hiring a mortgage broker, good for you! The next challenge is how to choose a good mortgage broker you can trust because trust will definitely be the foundation of your relationship. You can start by asking around through friends or even relatives who already have mortgages. As long as the reviews you are getting are from satisfied clients, you should be able to find a mortgage broker worth their salt.

    If you get a recommendation from the real estate agent of the house you are buying, take note that many firms already have in-house mortgage brokers, and its quite normal for real estate agents to know a lot of names in the loan industry. However, it will still be better to get a personal suggestion from someone who has benefited from the service.

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    Ssq Mortgage Protection Review

    If youd rather not put all your eggs in one basket, SSQ offers compelling options to maximize your mortgage protection coverage. SSQ calls its Term Plus policy a multi-purpose, all-in-one solution, and we have to agree! You can opt for a decreasing term option based on your mortgage needs, and add on optional riders to cover your bases. And with a built-in extreme disability benefit supporting the setup, you can easily get affordable combination coverage in one place.

    • Available Term Lengths: 10, 15, 20, 25, 30, 35, or 40 years
    • Available Term Types: Level and decreasing coverages
    • Maximum Amount of Coverage: $10,000,000
    • Renewability: Yes. Renewable every 5 years after the initial term, up to age 85
    • Convertibility: Yes. Convertible to SSQ permanent life insurance, up to age 70

    SSQs Extreme Disability Benefit is particularly unique. This kind of insurance is normally only available as an optional rider at an additional cost. But you can get it at no extra charge with SSQ life insurance products. Thats basically a complimentary advance of up to $250,000 in the event of an extreme physical disability.

    The total disability rider also gives pretty decent coverage if you were unable to work after suffering a disability. This could help cover between $300 and $3,500 of your monthly mortgage payments. And with the critical illness rider providing up to $2 million in coverage, youd definitely have all the boxes ticked.


    Best For Flexible Riders

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