Report to boost consumer confidence in brokers

by |
A new report from a major regulator will likely inspire confidence in home buyers to turn to mortgage brokers.

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."  
  • Layth Matthews on 2014-09-09 2:27:25 PM

    As long as there are two banks in Canada, there is a role for mortgage brokers. Because banks have an incentive to widen the margins and under the finder's fee system we have here in Canada, brokers have an incentive to keep them narrow.

    It would be great if mortgage brokerage regulation could be streamlined across Canada because the lenders and the mortgages are basically identical.

    The merits of bringing in cheap capital are obviously beneficial for any jurisdiction.

    What we also need now is some kind of standardized Environmental rating system for houses. So people who take the trouble to build or buy existing environmentally sensitive and super energy efficient homes get easier terms and a meaningful discount, not just a couple of bucks off the CMHC fee.

    The business case for Energy efficiency is growing rapidly.

    I hate to say it, but I guess you could take a half - step by factoring in actual heat costs.

  • rhéau séguin on 2014-09-09 3:55:39 PM

    BROKERS CAN EVEN BY DOWN THE RATE,BUT BANKS WOULD'NT DO. THATS A +and also they can only sell there products, brokers have many difference products then the banks.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions