Vancouver – The ability of Canada’s largest broker networks to lead the way through an increasingly murky market may be challenged by growing "compression," TMG partner Grant Thomas told brokers at the CAAMP Forum Monday.
“We all have to reinvest into our industry, but how do you do that when you don’t have the resources because of compression?” he said as part of a panel discussion on the state of the business. “What’s then left to build infrastructure?”
The comments echo those of other veterans concerned the drive to higher and higher splits for brokers and agents has whittled away at the ability of networks and national brokerages like The Mortgage Group to provide tools and education.
Thomas is the latest high-profile player to broach the thorny issue, even as growing competition between national organizations encourages many to sweeten the pot -- a way of encouraging defections, say analysts.
Still, splits as high as "100 per cent" are now on the table, usually directed at the large-volume brokerages.
The overall trend has raised questions about the viability of broker networks and whether they can and will continue to provide the same level of educational and promotional support broker expect.
That key support continues to be made available to his members, said another panelist.
“We are doing more than ever to provide the tools brokers need,” VERICO President Colin Dreyer told delegates. “We have to get you to use them.”