TD snub doesn't surprise brokers

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Mortgage brokers say they understand why a TD home buying guide advises seeking out a mortgage specialist for expert advice, with no mention of its broker-partners.

“Nothing the banks do shock me because they don’t seem overly interested in dealing with us,” Jason Breau of Mortgage Intelligence told “

In a new guide for Canadian homebuyers called “Mortgage essentials for the rookie homebuyer,” TD appears to outlines the expert advice mortgage specialists can offer buyers as they try to decide between variable and fixed rates. What it doesn`t do is plug its broker partners.

Still, one broker believes it’s naïve to expect TD to promote its broker partners in what is essentially promotional material.

“They don’t actively promote the broker channel when you have bricks and mortar, a significant branch system and sales force,” Denny Segal of Origin Home Financial told “I was with TD Canada Trust in their sales force for ten years and it doesn’t surprise me.”

The guide states: “A low interest rate isn't the only factor to consider when choosing a mortgage. A mortgage specialist can help you navigate options like flexible payment features, and discuss monthly payment amounts in the context of your overall cash flow and future home-buying plans.”

But is TD doing anyone a disservice by plugging specialists and by extension its products? Not necessarily, says Segal. TD has its own in-house products that aren’t available to its broker partners.

“They have mortgage sales force, their internal sales force and the mortgage brokerage channel,” Segal said. “There are certain things they don’t make available to brokers.”

At the end of the day, the guide is meant as a marketing tool; not an altruistic educational pamphlet.

“When it comes to promotion, they’re looking to promote the branch system, which is understandable,” Segal said.

  • @kiltedbroker on 2013-09-17 8:49:10 AM

    I don't believe TD ever even thought of including brokers in that guide. TD tolerates the broker channel at best... lets not kid ourselves.

  • Jon on 2013-09-17 9:08:25 AM

    Isnt it Naive to believe that any big 5 bank would advertize the use of mortgage brokers when they have their own salesforce which is paid less for funding mortgages?

  • Len Lane on 2013-09-17 9:20:43 AM

    Have to agree with kilted broker, TD tolerates us at best which is why I've never sent them a dime.

  • Omer Quenneville on 2013-09-17 9:37:26 AM

    I strongly believe that if mortgage brokers gave good advice to clients, clients and banks would be beating our doors down. No reason for anyone to go to a bank in my opnion. Banks should be considered secondary option.

  • Lior, Mortgage Edge on 2013-09-17 12:41:18 PM

    I'm a bit puzzled by all the fuss. Why would they plug brokers who don't work for them? When you see brokerages put together guides for clients or prospects, do they include "talk to your bank" anywhere?

    The reason all banks prefer pushing products through their own staff and not brokers is not necessarily the lower pay (which is true, as is for all bank-employed originators) but the revenue that bank employees can potentially generate from a customer. Mortgage brokers sell mortgages while bank staff sell mortgages, personal credit, mutual funds, savings accounts, all of which have better margins than a simple mortgage.

    Running a branch network is expensive so it is understandable that banks have to look for multiple sources of revenue. As Ed Clark said, the monthly cost of a regular bank account doesn't come close to covering the cost to provide that account.

    Len: our brokerage has a good working relationship with TD. I understand that some brokers don't want to send them business because they register using collateral charge. However, they have come through on difficult deals and the pricing is competitive so I see no reason not to work with them.

  • Omer Quenneville on 2013-09-17 12:48:31 PM

    I would personally have a problem letting any client walk into a colaterial charge. Most clients would gladly take a variable once they understand the "IN'S and "OUTS".

  • Ron Butler on 2013-09-17 12:56:35 PM

    Lior, I laughed out loud when I read the "broker's guide does not have: talk with your bank" anywhere. Beautifully said. Sometimes we brokers really need to keep things in perspective. TD is here to promote TD: not brokers, we should all get that.

  • Bill Nugent on 2013-09-18 2:30:39 PM

    Be very careful what you wish for. Even though you are not dealing wit TD Canada Trust or the other big bank's directly where do you suppose most of the funding comes from for the mortgages that you are funding.
    As for the advertisement they have not advertised brokers ever in any of the advertisement's that they do and I do not ever expect them to do so. I much prefer to have them in the channel than leaving as Firstline did.

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