One of Ontario’s leading mortgage specialists is setting the record straight for brokers, laying out his argument for why the bank increasingly provides the best of both worlds for aggressive entrepreneurs looking to maximize their funded volume.
“I have no desire to become a mortgage broker, in fact, I routinely have brokers phoning me to ask if they can become a member of my team,” said the mortgage specialist, based in south-western Ontario and a top performer with one of the biggest of the Big Five. He spoke with MortgageBrokerNews.ca on condition of anonymity.
“I brought in a funded volume of $100 million-plus last year,” he said Saturday in an interview with MortgageBrokerNews.ca. “The bank’s brand has helped me do that, but the bank also is encouraging self-branding for mortgage specialists and greater independence, so I’m really working for myself, but getting leads from the branch network as well.”
The analysis may surprise some mortgage brokers critical of the bank specialist model as stifling entrepreneurship. They charge that high performers eventually migrate over to the broker channel.
That won’t be the case with this high-volume broker, heading his own branded team of mortgage specialists. They focus on residential, but also focus on promoting the lender’s increased willingness to fund rental investment deals.
“I could definitely have become a broker, but I think the brand the bank has is tremendously powerful in getting deals, and there are no branch specialists that I’m competing against,” he said. “Also, I get benefits and a pension by being a bank employee, along with rewards for being a high performer. I wouldn’t if I were a broker.”
A slowing market and the challenges of chasing leads will undoubtedly send a growing number of former mortgage specialists back to the banks and out of the broker industry, brokers told MortgageBrokerNews.ca in February.
“I have no problem with former specialists moving into the broker channel – I made the move myself three and a half years ago after 13 years with CIBC,” said Jeff Trounsell, a sub-broker with Centum Pacific Mortgages in Vancouver. “But I would say that of those entering the market now as many as 50 per cent of them will have gone back to the banks or moved onto something else within a year. That’s different from the 60 per cent of my former colleagues at the banks who’ve come over to the broker channel in the last three years and are still at it.”