“I’m trying to slag banks in a roundabout way by pointing out their lack of experience,” Joe Cutura of Dominion Lending Centres
Origin told MortgageBrokerNews.ca. “You have to assume clients will talk to their bank anyway, so my goal was to show that many bankers are only in that position for a short time and encourage clients to speak to brokers as well.”
Cutura, who has spent 15 years working for a big bank, published an article
on Dominion Lending Centre’s website entitled Why you Need to Shop Around for a Mortgage
– and while a quick glance may make it seem that he is encouraging rate shopping, Cutura is actually encouraging service shopping.
And he believes clients who do this will choose brokers over the banks.
“Yes, getting an excellent rate is one part of it, but there are costs that can surface down the road without you even thinking of it now, which can cost you a lot more than you think (I’m talking about mortgage penalties),” Cutura writes. “Your Mortgage Broker is an expert at mortgages and will give you the best deal around for your specific situation.”
Cutura also provided questions that clients can ask their banks; questions he believe will help point out their lack of expertise.
These include asking; how long the bank rep has been in the industry, how a mortgage is registered (collateral versus standard), how long that rep plans to stay in their current position, and asking about different rates and terms.
“Most importantly, ask how prepayment penalties are calculated and ask for an example,” Cutura writes. “This is important as down the road you may have to get out of your mortgage before the maturity date.”
Still, the article will have to find its way to consumers to have an impact – and Dominion Lending Centres
, at least, is trying to draw eyes to it through its Twitter feed.
In an article published on his network’s website, one broker is tapping into clients’ desire to shop around against the big banks.