Going it alone may not be for everyone, and even one of the country’s leading independent brokers admits the compliance and payroll systems offered by broker networks are enticing.
It’s not just brokers who scoffed at one financial organization’s recommendations for an overhaul to the Canadian financial system, after one former bank executive provided his own criticism.
When it comes to improving the overall professionalism and education of the industry, one broker has suggested adopting an apprenticeship model.
The move is having a positive impact on broker business, but one analyst believes Stephen Poloz’s decision to cut the overnight rate in late January will negatively affect the economy.
Brokers are calling for a higher barrier to entry into the industry, and many believe the first step lies in establishing a more rigorous curriculum for attaining the broker designation.
Brokers are already considering diverting clients from one big bank to another, following a recent change to a popular mortgage product.
It may be a controversial tactic, but one broker has admitted to using it to discourage clients from shopping for rate at the big banks.
The International Monetary Fund has suggested the Canadian government should tighten the lending rules for uninsured mortgages, which it believes are contributing to an overvalued housing market.
Government interference in the mortgage industry has a history of frustrating brokers, but one leading player believes CMHC changes could be the key to reining in collateral charge mortgages.
Brokers often complain about the prevalence of part-time brokers and one industry professional has suggested higher fees and emulating the real estate agent model could rectify the problem.