"Right Mortgage" Debuts

Mortgage Alliance has launched it's new à la carte "Right Mortgage."

Customers can choose various mortgage options from a menu that includes:

• Different rate hold periods
• Pre-payment privileges
• Payment frequencies
• Amortization periods
• A "Skip-a-payment" option

Mortgage Alliance agents then price the mortgage based on the client's choices.  Presumably, the more "features" you get, the more you pay, and vice versa.

From an objective business standpoint, this product is brilliant marketing for two reasons: 

#1)  For a stripped-down product (i.e. a mortgage with no perks), Mortgage Alliance's rates reportedly compete head-on with the deep discounters.  With this type of ammunition, they can now entice clients in the door and upsell them.

If a client want's pre-payment privileges for example, Mortgage Alliance can add this as a "premium" feature and instantly show the client how much more it will cost.

#2)  This kind of product is key to attracting smart mortgage agents looking to switch firms.  More and more, top talent will demand proprietary products.  It gives them an edge.  That's why Mortgage Architects has it's MyNext mortgages and why Mortgage Centre covets its PC Financial products. 

Incidentally, MortgageBrokers.com was rumoured to have it's own line of mortgages planned as well, but they were reportedly shelved due to "market conditions."

Expect more brokers to offer similar exclusive "white labeled" products in the future (once Canada's credit crunch isn't so crunchy.)