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Mortgage Broker News | 09 Apr 2015, 09:01 AM Agree 0
A leading real estate agent is attempting to silence criticism that bank referral incentives influence where his industry sends clients for mortgage support.
  • John Dunford | 09 Apr 2015, 11:53 AM Agree 0
    The rest of Canada should take a look at Quebec. The real estate brokers get paid by the banks for good leads for mortgages. The standard referral fee is .50%. Some incentives are higher. The real estate brokers expect to be paid. If they refer a file to a mortgage broker, for the most part, they want a referral fee. I believe that this is a conflict of interest on the part of the real estate broker.
    How many mortgage brokers in the rest of Canada pay $500 for every $100,000 of mortgage applied for. Some specials, offered by banks are up to 1% of the mortgage amount.
  • J Burch | 09 Apr 2015, 02:11 PM Agree 0
    I am a mtg agent in Ontario and have been in the business for 26 yrs. I deal with only 2 realtors and never pay a referral fee. Almost all of my business comes from my past clients. Yes I am lucky but I have worked hard to make this happen. In the past when I used to approach the realtors the first words out of their mouth was how much are you going to pay me. I used to do a lot of business with one realtor on a new home site. When he was offered almost as much from Nation Bank for a mtg lead as he made from the sale I was out the door. Sure I got the calls when the deal feel apart, which I said no thanks, but you can't tell me a realtor isn't influenence by a referral fee.
  • Jim T, Advent Mortgage Services | 09 Apr 2015, 08:44 PM Agree 0
    As long as the referral fee is completely disclosed, there is nothing wrong with National Bank offering realtors 50bps in commission for the referral. Good for them. If they can find a cheaper client acquisition cost why would they not do this? I'm sure every broker would jump at the opportunity to improve the profitability of their business if it were available.
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