Broker questions exclusive product offerings

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Channel lenders offering exclusive in-branch deals are perplexing brokers.

"Every Meridian deal that comes from a broker has to get closed through a servicing branch whether it's plain vanilla residential or construction financing,” a broker, who spoke to on condition of anonymity, said. “So the higher up people at Meridian … should allow brokers to have access for two reasons: one is the bigger volume and having more consumers being exposed to the brand and two if the deal has get closed through the branch anyway, who cares who is originating it?”

The comment was in response to a limited time offer at the popular credit union for 1.69% fixed mortgage rate, which is being offered exclusively in Meridian branches.

And it’s a product some brokers would like to be able to offer clients.

“I send Meridian a few deals every year and they have always been great to work with. Surely they're paying something to their own reps to close this deal,” the broker said. Offer a small commission to the broker, say 30 bps, and then cross-sale other products to the consumer which is what Meridian is really looking to do with that kind of short term offer.”

It isn’t the first time the credit union has offered exclusive deals.

Meridian launched a limited time 18-month fixed-rate mortgage at 1.49 per cent last April. It was claimed to be the lowest posted mortgage rate in Canadian history at the time.

When offered the chance to comment, a Meridian rep reiterated that “Given the economics and the limited timing of this offering, we chose to have it offered in branch only.  Meridian values our broker partnerships and we continue to offer great mortgage options to this channel including our niche mortgage products like business-for-self and construction mortgages.”
  • Sue on 2016-02-09 9:42:32 AM

    Just another example of lenders that "bites the hand that feeds them". Through my decades in this industry, I've encountered this more than I cared too...with many lenders. Your trust and loyalty is to your clients and business...not to the lenders.

  • Ron Butler on 2016-02-09 10:54:35 AM

    Multi-channel lenders are going to do what they are going to do. It's their money. The concept of crying and moaning because one channel is offering something that our brokerage channel is not allowed to offer is just silly. Lenders find our channel a costly one to operate in, branches are a very costly channel as well, lenders have to call their own shots: support branches when needs be and support brokers in a way that makes sense to management. Let's stop complaining and just get out there and serve the public the best way we know how.

  • WhaTheFacebook on 2016-02-09 11:14:24 AM

    Seriously? ANY lender can and will chose to bypass you if they want to. In this case, they would prefer to keep more of the margin than deal with the volume with a lower margin.

  • Michele Hall on 2016-02-09 12:01:50 PM

    We need to understand unfortunately that if lenders with Branches can eliminate the broker from the deal they are more profitable in the branch . So sadly as brokers we are on the losing end of the product. You have to ask yourself though is a one year closed product best for the client ? Probably not in many cases. I typically will not use Meridian unless necessary. As on the files that I have sent to them , (Specifically cash back when they had it ) have made contact with the clients mid term and enticed them into the branch to do a blended rate lower than original rate for another 5 years. If the clients wishes to refinance in the middle of the new term they double dip on the cash back repayment in the penalty. We need to be aware of our markets and lenders in order to give our clients the best advise.

  • Broker on 2016-02-09 2:12:34 PM

    Meridian talks about offering niche products to brokers. Those are not what most brokers want or need. We want the amazing deal that everyone is talking about. We want the deal that we have to tell clients we cannot get for them, the deal that makes us look like a bunch of losers to our referral sources because we can't provide it.

    That is what we want.

    You can keep your niche products Meridian.

  • Ottawa Broker on 2016-02-15 7:47:07 AM

    The Meridian reps need to be very careful when signing our clients at the branch & watch what they say to our clients we've sent them. I closed a Mtg for a realtor (100% commission) so I obviously could not get them best rates but of course Meridian has a great product for this type of client. I was able to arrange a 2.99% for them & they fully understood why they were not receiving absolute best rates. When they went into the branch to sign, the branch rep told them I can get you 2.59%. Thankfully my client trusted me & told the rep that they would not be able to give them that rate of course after saying to them then got it to me. The rep told the clients oh well I haven't looked at your file I'm just to get you to sign the paperwork. Imagine the confusion all this can bring.

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