People are becoming more particular when it comes to choosing their mortgage broker. Mortgage brokers in Canada currently write about 33% of the total mortgage business, while in the U.S. mortgage brokers write closer to 70% It would only make sense that the need and advantages of using a mortgage broker will grow. A mortgage broker can often get you a better deal without you having to spend the time going from bank to bank and having to negogiate for the best rate. Canadian mortgage brokers make the mortgage process simple by often offering a low-stress straight forward alternative to borrowing from a bank. Banks and other lenders are much more competitive today, but a more serious threat may be the arrival of new people into the business. While the mortgage broker industry is absorbing a higher than average amount of newcomers, the mortgage consultant industry is also trying to develop an advice-based relationship with its clientele as opposed to a focus strictly on providing the best rate today. Getting GOOD advice and working with an attentive mortgage broker is paramount, given that the other lenders including the big banks, credit unions and alternative financial institutions will routinely offer competitive mortgage rates. It's important for borrowers to question their mortgage consultant, just as they would a prospective real estate agent or any other professional they may employ. Clients can lead the mortgage consultant by having an idea of their home buying objectives and mortgage payments that they feel they can afford. It’s up me, as a mortgage broker to prove that I'm better than a your local bank branch lender.
I'm a mortgage broker located in Vancouver area of BC.
Monday, August 20, 2007
How to choose the right Mortgage Broker
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4 comments:
Hi Brent, I was was wondering, do you have a reference for the statistic regarding 85% of Americans using mortgage brokers? The data I've seen pegs it near 70-75% so I'd just like to update my stats if needed. Thanks and take care, Melanie
Hi Melanie,
Congrats on being the first legitimate person to comment on my blog.
I can't recall where I got that stat from so I'm going to ammend it to 70%. Personally, I don't think the any comparison between Canada and the US is fair because the US banking system is much different than Canada's.
Hahaha. I hate those illegitamate posters!!
I agree. The States and us are like night and...
Funny how investors sometimes lump us together though.
Then again, if housing ever takes a dump up here we might be seen as closer cousins that we are today.
I do agree that there is plenty of opportunity for mortgage brokers to gain a bigger market share here in Canada.
Thanks to a relatively small proportion of Canadian mortgages being Subprime, if our housing market takes a slide they won't be able to pin it on the mortgage industry like they've done in the states.
Just my opinion though.
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