The report from the Mortgage Broker Regulators’ Council of Canada (MBRCC) found that mortgage brokers, as a whole, strive to place their clients in the most suitable mortgages available.
"Unsuitable mortgages can have a devastating financial impact on borrowers and their families," MBRCC Chair Kirk Bacon said. "We've also seen national economies around the world suffer when too many households are stuck with unsuitable mortgages."
This, of course, should come as no surprise to mortgage brokers who have long taken pride in their ability to provide unbiased advice and their ability to choose from a number of lenders.
The MBRCC interviewed industry associations to determine what roles mortgage brokers should be playing when advising clients about mortgage purchasing. They then surveyed 1,113 brokers to see how well their practices aligned with the associations’ expectations.
The report is viewed as the springboard for future collaborative efforts among the regulators, associations and brokers.
"We now have a much clearer picture of what mortgage brokers are doing to help ensure the suitability of new residential mortgages," Bacon said. "The MBRCC plans to build out from it to further our work in protecting Canada's mortgage consumers and improving the marketplace."
A new report from a major regulator will likely inspire confidence in home buyers to turn to mortgage brokers.