Word on the street is that Bank of Montreal is closing it’s mortgage broker division. It’s a curious move since mortgages are a $2 billion business for BMO. BMO seems to believe it can cut rates and do better selling mortgages in house. We’ll see.
One thing’s for sure, business is booming for Canadian mortgage brokers as people are finally realizing their value. BMO will now be totally shut out of this growth.
Side note: This news won’t be meaningful to 99% of our mortgage clients. BMO was rarely competitive with rates or terms versus other lenders we have access to.
BMO is conservative, people that get approved at BMO don”t need a broker, brokers find $s and best rate for people in desperate situations. BMO took advantage, made money, now getting out because reputation and image comes 1st. This decision will have short term losses, long term gains. You will see more BMO mortgage specialists, more internal control.
BMO is conservative, people that get approved at BMO don”t need a broker, brokers find $s and best rate for people in desperate situations. BMO took advantage, made money, now getting out because reputation and image comes 1st. This decision will have short term losses, long term gains. You will see more BMO mortgage specialists, more internal control.
Hello Gary,
Thanks for your comment. BMO is an excellent institution and it will be interesting to see how this all plays out.
The notion that mortgage brokers only benefit clients in desperate situations, however, is a myth that needs debunking.
Mortgage brokers are an invaluable asset to those with perfect credit and bruised credit alike. That’s because mortgage brokers have access to dozens more mortgage products than any one single lender. This helps the client get a “customized” mortgage that fits their rate, pre-payment, and terms criteria.
For example, one of my recent clients wanted the flexibility to make larger lump sum payments than their current bank allowed. We researched 40 lenders in our database and were able to quickly secure them a product with double-up prepayment privileges and a great rate. This saved the client thousands of dollars in interest and sliced years off their amortization.
Of course, in addition to better terms, the negotiated rates and personalized service we can offer are almost always better than the big banks.
What is this new thing in market “Money Merge Account” MMA can you really pay down your mortgage in 1/2 or 1/3 of time and do bank approve of such measures?
Love to hear your comments
Thanks
What is this new thing in market “Money Merge Account” MMA can you really pay down your mortgage in 1/2 or 1/3 of time and do bank approve of such measures?
Love to hear your comments
Thanks