“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.”
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.