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 MortgageBrokerNews.ca 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.”