TD Bank is offering brokers a ceditor insurance insurance product that is based on volume and not dollar amount, meaning even the smallest deals will garner extra cash for brokers.
The big bank launched its TD Credit Protection (TD CP) referrals program at the annual Mortgage Brokers Canada (CAAMP
) national conference in Toronto. The program officially started November 13.
According to TD, the program allows brokers to refer clients to the bank for the credit protection for all TD mortgage deals; the broker simply refers the client to the branch and the bank takes care of the rest.
TD suggests the best time to speak to customers about TD CP is when meeting clients to sign the mortgage commitment.
The compensation is a tiered structure based on completed deals.
Less than five completed deals earns brokers $150 for life coverage and $75 for critical illness coverage.
Five life sales and greater than 10% penetration earns brokers $300 for life coverage and $150 for critical illness.
And if sales receive greater than 15% penetration, brokers will receive $400 for each life deal and $200 for each critical illness deal.
The referral commission is paid on a monthly basis for CP coverage that is active a minimum of 90 days.
It certainly gives TD a competitive advantage, as brokers are always looking for ways to diversify income streams.