A mortgage professional advising homebuyers to choose brokers doing 100 or more deals a year is now clarifying that comment published in the country`s largest newspaper.
“Certainly there are very good brokers that do less than 100 deals a year,” said Paul Poirier, of Dominion Lending Centres – Eagle Group in Concord, Ont. “My comments were never meant to disparage those brokers.”
Last Thursday, Poirier was one of two brokers profiled in a Toronto Star article explaining the benefits of using a broker over going directly to the branch. The article has been largely viewed as a win for the industry, as it tries to up its profile among consumers.
Still, some brokers have taken issue with what they understood Poirier, a high-volume broker, to have said about finding a quality mortgage professional.
The report describes Poirier as suggesting consumers look for brokers who do a minimum of two deals a week, ostensibly as a way of weeding out the true professionals from part-timers.
“’Ask how many mortgages he or she does in a year. The more they do, the better chance you have of getting a lower rate,' he says. This is because banks offer deals to brokers who bring in a lot of business. And what’s the magic number? Poirier says 100 or more per year — or at least two a week.”
Poirier is concerned some broker may have been offended.
“I think some people misinterpreted my comments,” the DLC broker told MortgageBrokerNews.ca. “The explanation behind what I said should have been expanded.
Poirier stands by the magic number, but added it is by no means arbitrary.
“Of course there are many brokers who don’t get to do this much business. Maybe some operate in locations that do not get that volume of business,” he said. “I am not saying that they are all less capable brokers, but those who do this full-time are in a better position to serve their clients than part-time brokers.”
Brokers that typically transact a large volume of deals are more likely to provide their clients with some advantages, Poirier said.
“For example, if you do more deals you are not only more familiar with the process but are also likely to be updated on the products, programs and promotions that lenders offer,” he said. “Under tiered bonus programs offered by many lenders such as ING and Street Capital, the more business a broker brings to them, the lower rate they qualify for.
“Sometimes lenders provide brokers with bonuses which the agents can then use to buy down rates for their clients.”