Forum

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Mortgage Broker News | 02 Apr 2013, 12:00 AM Agree 0
Don’t obsess over the disruptive nature of rate comparison sites, says one industry analyst and speaker for the upcoming Mortgage Summit – instead create your own disruption and make your own waves in the channel.
  • Jim T, Advent Mortgage Services | 02 Apr 2013, 06:09 PM Agree 0
    Why can't someone be both the cheapest and the best? These are not mutually exclusive events. Just because someone is providing low rates does not mean they are not providing "strategic mortgage planning and intelligent sales processes". In today's competitive market, a broker needs to provide both to win the business. Quick question: when you purchased your last car, did you not demand and expect the best service/experience and price? I rest my case.
  • Leonidas | 03 Apr 2013, 08:09 AM Agree 0
    Why can't someone be both the cheapest and the best?

    Exactly!! To many brokers think that if you are buying down rates, you must not be offering value to your clients.

    Well said Jim
  • Alta Broker | 09 Apr 2013, 11:57 AM Agree 0
    And its free!! 'nuff said.
  • James Shinners | 11 Apr 2013, 06:19 AM Agree 0
    Jim, using your car analogy, the real question is "are you selling Mercedes or Kias?" If you want to sell Mercedes, you have to present and act like you're selling a more expensive item with considerable value added, and if you're selling Kias, then you have to be the low price leader. Different clients look for different things and are willing to pay a higher price for the better product/service. So, pick a niche and market accordingly. Neither strategy is wrong, but Kia buyers don't want to pay a high price and Mercedes buyers don't expect to pay the lowest price.
  • Ron Butler | 11 Apr 2013, 09:20 AM Agree 0
    I completely agree with Mr. Shinners, some clients need a huge amount of help and a ton of lender review to get to the right solution.

    That being said; it's not always Kia versus Mercedes. Sometimes its just Mercedes versus same Mercedes for less money.

    The fact is some lenders let the Broker discount to the bone. So if Broker A is offering First Nat at 2.89% and Broker B is 2.74% First Nat same term. Well, nuff said.
  • Paul Therien - CENTUM | 12 Apr 2013, 10:58 AM Agree 0
    I've said it before, and I will keep on saying it. The mortgage industry in Canada was built on rate - we have been competing on rate for decades. I have seen brokers across Canada for the last 20 years market the tag line “We can beat the banks” – it is our reality and it seems like there are many people who are in denial of that history. We, brokers and lenders, have sold the consumer on the concept that the lower the rate the better the mortgage. Do I think or believe that is correct? No, I do not – but we did a very good job of convincing the consumer that it is the right thing to look at. We needed an edge to sell to the consumer, and rate was our edge in the 80’s, 90’s and 00’s – just as it was an edge to market ourselves as the place you went when the banks said NO back in the 70’s and 80’s.

    In fact we are still recovering from the “lender of last resort” image… and we will more challenged to change the consumers mind about rate simply because the banks spend millions marketing low rates, pay the mortgage off faster, etc.

    Do we need to start making the shift and educating our customers? Yes we do… but we should not be too quick to judge brokers that continue to sell low rates. Remember, this is a monster we created for ourselves.
Post a reply