All about the rate

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I was just reading the latest issue of BrokerBiz magazine, which is IMBA's magazine and they had an interview with John Webster the President of Scotia Mortgage Corporation.

He's trying to sell the positive points of the broker channel / industry, but it's getting very repetitive and frustrating to hear the same comments over and over again from industry members, while still losing business because the exact opposite thing as to these comments happen to us mortgage brokers / agents all the time.

The thought of not focusing heavily on the rate but instead selling yourself and professional expertise to the client is so not true and it doesn't work for the most part. You know why? Because it's in our lower nature to be greedy, specially when it comes to money. No one cares about you the broker, all they want is the best rate and if you can't give it to them someone else will.

I just lost another deal today, because a Scotia branch coincidentally enough, under cut me two days before closing and after six months of back and forth service for the client, they said bye bye and went to the branch.

This is not the first time I've lost deals because my client or potential client was shopping around and overlooked my years of experience and expertise and went straight to the best rate available.

We need to stop kidding ourselves with this "it's not about the rate" nonsense, because for most Canadians, it is all about the rates. Everyone promotes their best rates, including banks.

There needs to be an industry shift / change of thought, legislation, and policy on how we do things around here. Otherwise, we'll continue to fight for business in a negative way creating further disunity in the industry.

If we are going to really talk about the benefits of the broker industry for the consumer, banks need to move more of their dependence on the broker channel and stop creating their own larger and larger sales force.

This can go on, but I hope to hear your thoughts on this very out of hand and large problem.

Thank you.

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