“While I personally feel 5 per cent is too little, I would like to see 10 per cent, I am not about to hold back information to someone that wants a product simply because I don't approve. Who the heck am I to decide what is good for a client,” mortgage broker Omer Quenneville wrote in the comments section of MortgageBrokerNews.ca. “While I always have an opinion and like to advise my clients, ultimately it should be the clients choice not the brokers.”
The discussion was about 100 per cent financed mortgages – products currently being on offer by several local credit unions – but the same thoughts apply to other unconventional mortgage products.
Omer’s point was reiterated by a number of industry players who believe it’s the brokers duty to advise to the best of his ability but that the ultimate decision, obviously, is left with the home buyer.
“Omer raises a good point: We are brokers (and) we can ask adequate questions to address suitability of the ‘zero down’ mortgage but after that it's the consumer's decision and it's our job to fulfill that decision to the best of our abilities,” Ron Butler
Butler Mortgage wrote. "Once all the pros and cons are discussed we are here to execute the client’s wishes.
Of course, clients should be given all the up-front information regarding the ins and outs of the product.
“Agree with Ron & Omar, with one caveat,” John Van Driel of The Mortgage Shopper wrote. “I will point out to the clients that wish and qualify for 100 per cent financing, that they will likely not be able to refinance, until their term is up, with present 80 per cent lending rules.”
When it comes to advising clients on controversial mortgage products it’s best to leave the final decision with the client, say two leading mortgage brokers.