On Tuesday, three industry leaders and I convened to examine some key issues that are shaping the Canadian mortgage broker market.
Panelists included Jim Murphy (CAAMP), Mark Kerzner (TMG), Jared Dreyer (MBABC) and this author.
In case you missed it, a replay is above.
We would like to extend our sincerest thanks and appreciation to The Mortgage Group (TMG) for hosting and producing this very worthwhile discussion.
Here’s a flavour of the points made by the panel….
Jared on the new refinance rules: “Consumers are still going to borrow,” regardless of refinance restrictions. The difference is that now they’ll pay more interest because they can’t consolidate debt at low rates.
Mark on lender/broker relationships: “Your customer is #1A, but your lenders have to be a really close #1B.”
Rob: “If you start seeing more direct-to-consumer (lending) models, you’re going to see an impact on broker compensation.”
Mark on pooling: Allowing brokers “access to pooling is important for consumers…as long as it’s managed effectively.”
(Pooling is where multiple agents submit deals to a lender under another agent to obtain better volume-based status, rates, service and/or compensation.)
Jim on pooling: “Pooling is a benefit (to brokers and consumers) because not all brokers have "access” to the most competitive offerings from all lenders.
Rob McLister, CMT
Last modified: April 26, 2017
Good dialog. It’s healthy and constructive to get issues like these out in the open. Otherwise we never move forward as an industry.
The broker industry has to help people better understand the value we provide. Anyone can walk into a branch and get a good rate but one lender alone will never give you thorough advice.
I think it always comes back to perception and legitimacy. Everyone seems to hate banks, but they all seem so willing to trust them. On the other hand it seems that the majority of average consumers use the words ‘shady’ or ‘seedy’ to describe the mortgage broker. Not sure whether this is fair or not.
Charge brokers a cancellation fee. Efficiency problem solved.
Hi Rob,
Great video. My thoughts have been over the years is why brokers and
Financial Advisors team up to work together.
Banks do this or try to. Often the best time for clients is to offer more
than rates. For example why insurance with the bank is more costly,
why contributing to an RRSP or TFSA maybe better than trying to
pay off a 3% debt. Creating a strategy for kids education or retirement
plan.
Hey all
I’ve written a new report entitled, “The 10 Top Myths Of Canadian Home Ownership – Exposed” and was wondering if I missed anything…
I would welcome your thoughts and comments.
Cheers!
Mark Huber, CFP