Lender addresses broker fear that it is exiting the channel

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Meridian Credit Union has replied to a broker concern that it is planning on pulling out of the channel.

“Given the economics and the limited timing of this offering, we chose to have it offered in branch only,” Wade Stayzer, vice president of sales and service at Meridian, told MortgageBrokerNews.ca in an email.  “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.”

The question was raised by a MortgageBrokerNews.ca reader after was announced the CU was offering a super-low rate in-branch only.

“Does this spell the end of their broker channel offerings? Are they going the way of three of the big banks?” John Van Driel, an agent with Mortgage Shopper, wrote in the comments section of MortgageBrokerNews.ca. “If not, you would think this would be offered through brokers at a discounted finder’s fee.”

Meridian announced a one-year fixed-rate mortgage with a rate of 1.69% Tuesday, noting a strategy that is currently going against the trend of rising fixed interest rates.

"As a Member-owned financial institution, we are able to take advantage of the current bond and lending environment and pass those savings onto our Members," Bill Whyte, chief member services officer for Meridian, said in a release.

MortgageBrokerNews.ca was told by a Meridian rep that it was not being offered through the broker channel, which sparked questions from the credit union’s broker partners.

However, this isn’t the first time the Ontario-based lender has offered a mortgage product exclusively in-branch.

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.
  • Jessie on 2016-02-05 10:05:44 AM

    Not a big deal here. There are brokers offering low 1 yr fixed at 1.79%.

  • Marie Illerbrun on 2016-02-05 10:13:44 AM

    They have done this about 3 or 4 times now with 1 yr, 4 yr or 5yr. My only complaint every time is sure lots of banks offer inside rates but they don't advertise it to death and make a point of saying its not for brokers though. They need better PR on these promos.

  • Jeremy on 2016-02-05 10:17:35 AM

    This has been going on for years and will continue to. Banks have to drive business to their branch network somehow. As a broker myself, I hate when I hear my colleagues complaining. The days of the broker having the rate advantage are over. Rate is longer our competitive advantage, so it's time we change our value prop.

  • Jamie on 2016-02-05 10:27:02 AM

    an other issue I do not like when the branches have lower rates than the broker channel is that Meridian requires branch signings - so when the clients come into the branch to sign - they see the branch only rate offerings - which is lower than what they were given by us and clients naturally ask "how do we get that rate"
    They are then told "you have to come to us directly" which does not make the clients feel good about dealing with a broker

  • James on 2016-02-05 11:01:31 AM

    What PR? they have that...it says...deal with us direct! and yes, they don't care about your feelings.

  • Raymond Green/Mortgage Broker on 2016-02-11 10:23:07 PM

    wheres the loyalty i am a broker offer low rates

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