Study may encourage buyers to seek broker advice

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A recent study crunched the numbers on Canadian home buyer habits and the prevailing trend is that many aren’t dedicating enough time to that search.

The study, conducted by Ipsos and commissioned by LowestRates.ca, discovered the average Canadian spends a mere 5.75 hours deciding on a mortgage. This, despite the fact that 67% believe getting a mortgage is a very important decision.

The reason for this, according to the man behind the study, is mostly habit. That and an ingrained trust in the big banks.

“The first reason is just that people habitually trust the big banks. It’s what their grandparents did, what their parents did and now it’s what they do,” Justin Thouin, co-founder and CEO of LowestRates, told MortgageBrokerNews.ca. “They just go to the bank and they trust that the information they’re getting from the bank is their best option. And they don’t think or even recognize that there is anything else out there.”

The study – which included 2,500 Canadians and claims to be accurate to within +/- 3.5% points 19 times out of 20 had all Canadian adults been polled – found homebuyers spend more time (7.75 hours) on finding a vacation than they do a mortgage.

It also found 67% of Canadians got their mortgage from a bank, compared to 22% who used a broker.

“I think it’s really important (to use a broker). Mortgage brokerages can not only compare the market for consumers and provide access to three of the five big banks, but generally can offer 20 other lenders,” Thouin said. “Mortgage brokers can present not only the best rate, but also the best overall mortgage for the consumer. It’s not just about the rate; different people have different life situations and unique needs.”
 
  • Ken on 2016-09-22 12:35:19 PM

    Speaking from experience as a manager with a Big 5 Bank, retired and now brokering the trust in going to their bank is misplaced. The one I worked with placed limited emphasis on actually training their sales staff (read advisors/financial service reps) in basic product knowledge, underwriting skills and why things are done the way they are in not only mortgages but all financial products they sold and put it on what scripts to use on which screen. If something didn't work within the prescribed script and response the staff are left hanging and the client is the one that suffers. As the experienced staff have enough and move on to other endeavours it leaves clients who are making one of the largest financial decisions in their lives to inexperienced staff who can't anticipate issues and are focused on selling whatever the flavour of the month is or what they are told to push, not necessarily whats best for the client.
    Average tenure is dropping fast and as a result so is the quality of the advice.

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