Mortgage Handbook

Home Mortgage Lenders

Mortgage lenders, also known as creditors, are the financial institutions that lend money for the purpose of residential real estate purchases. These organizations include banks, credit unions, and insurance companies which are willing to put up secured capital to assist buyers in buying property.

The vast majority of first-time home buyers in North America need to borrow some money to purchase their first piece of property. After obtaining a mortgage, borrowers are able to pay back the loan in the form of monthly payments over a fixed amortization period – generally between five and thirty years.

Mortgage lenders generate revenue by charging interest on the balance of the mortgages they provide. To get the best interest rate, it is usually a good idea to compare two or more lenders before purchasing a new home, condominium, or piece of vacant land.