Broker welcomes news coverage and competition

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Brokers are often frustrated by the amount of media attention paid to the mortgage industry – and specifically, the big banks’ ever-looming sub three per cent offerings – but one player uses it to educate clients.

“I think it’s great to have the media attention but it’s always the focus on interest rates and not the focus on some of the other things like penalties and privileges that are important but people don’t realize they’re important,” Mitch Thibodeau of Verico the Mortgage Professionals told MortgageBrokerNews.ca. “(The media) focuses on advertising rate all the time because that’s what people are after but we need to find a way to convey to the public it’s not all about rate and that’s what we try to do but with all the media attention around rate it’s hard to convince clients there is more to a mortgage than just rate.”

Specifically, Thibodeau notes the recent resurgence of BMO’s sub-three per cent five year fixed rate - -and the close coverage of the mainstream media – as a main driver of clients to his door.

With the increased media attention Thibodeau says competition has been fierce. And although many clients are intent to search for the lowest possible rate, he believes educating the clients on the specifics of each mortgage product is more important than ever.

“It’s good for the industry, it’s good for the clients; they know what’s available, they’re better educated, they’re making sure they get the best deal,” Thibodeau said. “The only thing, from that standpoint, they have to ensure they know what they’re getting because a lot of times they are so focused on rate the other terms and conditions of the mortgage and they don’t realize what they’re getting into until it’s too late and then a few years later those things come to light and they get frustrated.”
 
 
  • Paolo Di Petta | dipettamortgage.com on 2014-04-24 12:03:49 PM

    I agree, getting brokers out there is always a positive - for all of us.

    More importantly, we really need to differentiate from the banks as an industry. The insurance industry does a great job of this, but our industry seems much more fragmented (and to be honest, selfish)

    Until we can co-ordinate and really throw our collective weight around, we're going to keep getting bullied by the Banks and CAAMP.

  • Andrew on 2014-04-24 12:49:14 PM

    As an insurance professional, I would say that mortgage brokers provide an incredible service that is not communicated well to the public. Insurance brokers are very active in the media and have national marketing campaigns that promote the value of the role and need for the service. I would really like to see something like this happen with the mortgage broker role in order to unite the industry more and put the spotlight on how mortgage brokers help everyday Canadians.

  • Michael Graves on 2014-04-24 1:06:14 PM

    I 100% agree with Andrew; a national campaign focused on the benefits of dealing with a licensed Mortgage Agent or Broker would put the needed spotlight on the industry to help communicate the benefits of dealing with an unbiased third-party when negotiating a new mortgage or new term. CAAMP should lead the way; what are the fees CAAMP collects going towards? Buying Real Estate in Toronto for an Education Center and big name speakers for the Annual conference; could be better spent, I'd say.

  • John on 2014-04-25 1:05:15 PM

    I agree with all the comments. I have said for years that CAAMP, IMBA, etc. need to put the fees towards educating the consumer, not just the brokers/agents. We're still viewed as the 'Go To' when clients are turned down by their banks. More comradery needs to occur among the industry.

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