A handful of lenders began trimming their variable-rate mortgage (VRM) discounts this week. They’ve gone from prime minus 0.75% (the average market rate) to prime minus 0.65%, or even prime minus 0.50% in some cases.
To most, these changes have seemingly sprung out of nowhere. Few expected rising VRM rates before the Bank of Canada resumed tightening. Unfortunately, it’s happening now and it’s beginning to smell of a trend.
So far, four of the top 10 broker lenders have reduced discounts, and others are considering following suit.
Here’s a look at what’s behind it…
With Canada so married to the U.S. economy, Canadian rate speculators are perpetually glued to U.S. Fed announcements.
Today we had a unique opportunity to watch U.S. Fed chief, Ben Bernanke, hold a scheduled press conference (Fed chairmen never do that). He said he wanted to “add transparency” to the Fed’s plans for future monetary policy.
Bernanke made several points of note for Canadian rate watchers. He said:
One example of where more is not necessarily better is with the number of lenders a broker advertises.
Brokers often quote relationships with numerous lenders. Just for the sake of illustration, we Googled “…Mortgage Broker” and examined the top five results. Here are snippets from each broker’s website:
On Thursday, Statistics Canada published a new report on how debt is affecting Canadian families. It contains loads of data and below are some of its mortgage-related findings:
Canada recently enacted a new anti-spam law called Bill C-28. It’s expected to come into force later this year.
Proponents say C-28 will lighten the spam load on all of us.
At the same time, it could turn many businesspeople into spammers themselves!
As a mortgage broker, for example, it’s not uncommon to send out e-mails or newsletters to current or former clients. In some cases, you may not have had contact with a client for years.
If that kind of scenario applies to you, C-28 will change your email habits. For brokers, mortgage specialists and lenders, it pays to know the implications in advance.
Company: Valueland Mortgages
Position Title: Mortgage Agent/Associate/Sub-broker
Years of Experience Required: 2 years of relevant experience preferred
Location of Position: Ontario, British Columbia and Alberta
How should applicants contact you? email@example.com
Mortgage Agent / Associate / Sub-broker
Valueland Mortgages was established in 2002 to provide Canadian home owners with objective mortgage information and competitive mortgage products. With over eight years’ of extensive experience in the mortgage lending industry, Valueland Mortgages has saved thousands of dollars for each customer and made their homeownership a reality.
Valueland delivers value to people who associate with Valueland. Everyone wins with a Valueland connection. With this mission, we strive to become the preferred mortgage source in Canada.
We are expanding into all areas in the Provinces of Ontario, British Columbia and Alberta. We need talented professionals working to service Valueland’s clients. You will help us achieve that! In turn, we will help you reach your career goals and obtain financial freedom. Listed below are the benefits you shall get from Valueland advantages:
- Get in-house training at Valueland;
- Access to leading mortgage lenders at status levels;
- Work with a team of professionals including lenders;
- Use of a web-based CRM (customer relationship management) system;
- No monthly or annual fee;
- High commission split.
Currently, Valueland has the following job openings:
Mortgage Agents/Associates – Ontario, B.C. and Alberta.
- Successful applicants must be licensed or be able to obtain a provincial mortgage agent licence.
If you are talented, self motivated, detail oriented and have a positive attitude towards customer service, please contact us with your current resume.
All inquiries will be kept confidential.
“The RBC brand is defined by our clients and partners and we sincerely apologize for the inaccurate information that was presented in the document.”
That comes from RBC Public Affairs Advisor Nicole Fisher, in a letter to broker associations. We haven’t seen the rest of the letter yet.
Schindler has reportedly been circulating this flyer, which grossly mischaracterizes mortgage brokers in relation to bank specialists. It’s a document that demonstrates a stunning lack of knowledge, professionalism and discretion.
The piece, which displays RBC’s logo and web address, has gone viral and caused a PR embarrassment at the nation’s biggest bank. Incensed brokers from across the country have demanded (2nd link) that RBC retract the misstatements on the specialist’s behalf.
Company: TMG The Mortgage Group Alberta Ltd.
Position Title: Sales Director
Years of Experience: N/A
Required Licenses: N/A
Location of Position: Alberta
Applicants may contact: firstname.lastname@example.org
Start date: Spring 2011
- Support the Mortgage Associates and Teams in your market by offering continuous training, deal support, and guidance
- To grow both the mortgage volume as well as the overall profitability of the company
- To recruit new Mortgage Associates to TMG
- To help build a strong market presence in the Alberta market
- To ensure compliance with the regulatory body(s) in all jurisdictions
- To become a Broker Delegate for TMG (if required)
- To represent TMG Alberta at events including tradeshows, symposiums, courses, etc
- To be an active participant on the senior management team
- To assist TMG Associates develop and follow business plans to encourage their ongoing success
You will report directly to the President, TMG The Mortgage Group Canada Inc.
Base Salary: commensurate with experience plus;
- Variable Bonus based on achieving targets comprised of volume, profitability, recruitment and retention. Variable bonus targets are set annually
- TMG Health / Dental and Life Benefits
This position requires regular and ongoing travel. This position is to be based in Calgary.
Experience in both mortgage fulfillment and sales leadership is required.
All applications will be kept strictly confidential. Only qualified applicants will be contacted for an interview.
A leader in residential and commercial mortgages for over 20 years, TMG The Mortgage Group has built a reputation on expertise and integrity with over 700 accredited mortgage professionals across Canada. If you’re a results-oriented, customer-focused individual that’s interested in a career as a mortgage sales leader consider joining the TMG.