Reports of the broker industry’s death have been greatly exaggerated, according to one industry player who believes there will be a place for brokers as long as there is competition among lenders.
“If there are [at least] two lenders they’ll try to widen the margins and we’ll have choices with the competition between them and there is going to be value in knowing who is offering the best deal,” Layth Matthews of RateMiser told MortgageBrokerNews.ca. “In the information age you could check the available rates … but there is just always more people offering new and innovative solutions, so I don’t think mortgage brokers are going away anytime soon.”
Technology may be encroaching on broker business and, in some cases, shrinking profits, but Matthews argues nothing will replace the human interaction and the expert advice mortgage brokers are able to provide.
Indeed, several other industries have dealt with similar prognostications for ages.
“Every broker – whether you’re a travel agent, a stock broker, whatever – there is always predictions of your demise,” Matthews said. “As technology progresses it picks up some of the value that you provide. You could see it as a threat but I think it’s more realistically understood as the necessity to progress.”