Rate transcends network lines

Rate transcends network lines

Rate transcends network lines

An increasing number of brokers seem prepared to cross “network lines” to get to new lenders, with agents outside the Pacific Mortgage Group expressing interest in Radius’s 2.94 per cent offer.

“This is not the time to take things personally,” said Derek Rowley, mortgage agent at Real Mortgage Associates. “If Radius is the one that would get your client a good deal, then you should take it.”

On Monday, Radius formally introduced its RateWise Mortgage, which offers 2.94 per cent on a five year term with 10/10 prepayment privileges. That offer is available to Mortgage Architect professionals but also those agents and brokers  who have signed up with the lender.

The newfound interest on the part of brokers outside the Pacific Mortgage Group runs counter to past thinking.

Many brokers have been known to shun lenders that are associated with competing broker networks and not a few have expressed reservations over Radius, formerly myNext Mortgage, because of its affiliation with Pacific.

But, said Rowley, the current environment calls for brokers to set aside any partisan preferences.

“With the tight mortgage market and dwindling number of … lenders, brokers need to consider all their options,” he told MortgageBrokerNews.ca. “Regardless of whether the lender is called Resmor, MCAP, Radius or RMG, if they’re doing a good job and reaching out to you, you should consider bringing them your business.”

Another broker expressed the same sentiment, but points out low interest rates must not be the sole consideration.

“I do not have any relationship with Radius, but its 2.94 per cent offer would be enticing because it would be attractive to my clients,” said Simon Vendryes, with RMAI Mortgage Mavericks. “But it’s not just the rate that matters.

“Determine the terms, find out what are the prepayment arrangements and penalties and see if the lender will hold the rate or offer it only for a certain period.”