Through the networking of lenders and investors, mortgage brokers work with banks and credit unions to find options for their borrowers. After evaluation and scrutiny of the possible options, a borrower signs a mortgage agreement where they are to pay monthly subject to existing interest rates. The interest rate is the profit gained by investors. Failure to pay the loan leads to the foreclosure of the property that was used as collateral and the investor takes possession of the property.

Are you buying a home with less than 20% down in Canada? Then you need to learn about CMHC loan insurance.