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 | 12 Feb 2013, 12:00 AM Agree 0
Ouch! A MortgageBrokerNews.ca article profiling Realtors who expect to be paid for the referrals they send brokers hit a sore spot with readers Monday.
  • Layth Matthews, CEO RateMiser Mortgage Advisors | 13 Feb 2013, 04:42 AM Agree 0
    I don't think it's such an easy philosophical answer. I have a realtor partner who referred several clients who closed with me but not with her! So she was glad to get a consolation prize from me. Also, both brokers and realtors can use a little diversification. I've never received a referral fee from a realtor, but I wouldn't turn it down.
  • Alexandra Stinson(centum power financial) | 13 Feb 2013, 05:53 AM Agree 0
    I completely agree with Kirwan, my realtors are so happy that I am an extension to them.
    Thanks to me they are in much better control of the transaction and at much higher success rate of getting their own commission, which we all know if MUCH higher the ours! They know that I do a lot of work for them and do not ask or expect any financial reward
  • KJL | 13 Feb 2013, 05:56 AM Agree 0
    Kirwan - you are 100% correct .. Good realtors don't want a dime. They want us in their back pocket. Making deals, so they can get their approvals and get on to the next so they can make some more $. I have over 40 realtors who provide us biz consistantly and another 80 for one offs and not one looks for $$ , they look for quality service as well as a partnership. Any such a realtor looking for $$$ lasts about 3 seconds with me !! Mr. / Mrs. realtor - stick to selling houses and leave the mortgages to the professionals ...
  • Ontario Broker | 13 Feb 2013, 06:10 AM Agree 0
    In Ontario the Real Estate & Business Brokers Act prohibits a real estate registrant from paying referral fees to non-registrants.See Registrar's Bulletin Re:Bird Dog Fees at reco.on.ca
  • David Grossman | 13 Feb 2013, 06:31 AM Agree 0
    I don't generally compensate realtors for referrals, although I used to, because they only bring difficult deals to me now, and they appreciate the work that i do. Some realtors want to be compensated for their referrals, and I don't think that's necessarily a bad thing, and I don't think its fair to say that they are not a good realtors if they want a referral fee. Everyone does business differently. http://www.alltalktv.com
  • Sophie | 13 Feb 2013, 07:09 AM Agree 0
    Real estate agents earn more commission on a deal than a mortgage agent would. 50% of my business comes from real estate agents. They would never expect a referral fee. They appreciate the approval turnaround time, the quicker they can waive conditions knowing when I say its ok to waive, its a done deal, as opposed to working with some FI's that take 7 days for financing only to not return calls to their client. Would they in turn pay me for getting their sale finalized? I'm earning .80bps, they are earning 2.5%+ To pay them a referral fee is ridiculous. I wouldn't deal with a realtor who expected to be paid. Like David mentioned, the one off's that bring you a difficult deal that we end up putting together should be thankful we saved it and not expecting anything in return. Actually they should be referring a good solid deal to make up for it. Its all about service, and we as mortgage agents/brokers have that advantage.
  • Annette | 13 Feb 2013, 09:21 AM Agree 0
    Ryan is correct. We are part of a Realtor's 'Professional Team' I did pay once and the Agent hounded me to death from the day of closing for his fee - even though he he knew there would be a lag time before I got paid. Well said Ryan!
Post a reply