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Introduction A mortgage broker acts as an intermediary between consumers (e.g. home buyers) and lenders (e.g. financial institutions). The broker's role has recently gained in popularity as the mortgage market has become more competitive. Canada In Canada, each province determines the laws governing mortgage brokerage within its territory. However, throughout the country, the Canada Mortgage and Housing Corporation insures higher risk loans (normally loans with a smaller down payment). Moreover, all Canadian mortgage brokers are regulated by the CAAMP (Canadian Association of Accredited Mortgage Professionals). Quebec A few exceptions exist in Quebec, where the law is based on the Civil Code. This allows both finance industry as well as real estate industry professionals to exercise mortgage brokerage duties. Benefits A mortgage broker is especially helpful given the variety of mortgage options available today: open vs. closed loans, fixed vs. variable rates, monthly vs. weekly payments, various amortization periods, and so on. Moreover, a mortgage broker often deals with several financial institutions, which can facilitate the task of shopping around by removing the need to call each institution individually. Finally, the homebuyer can use the services of a mortgage broker at no cost, since the broker is paid by the lending institution. This article uses material from the Wikipedia article "Mortgage broker". Licensed under the GNU Free Documentation License.
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