This week's news on MBN
Live from the Investor Forum in Toronto, MortgageBrokerNews.ca's Justin da Rosa speaks to a number of brokers about the news making headlines this week.
Video transcript below:
Justin Da Rosa, Mortgage Broker News
Justin Da Rosa: Hi, I’m Justin Da Rosa at Mortgage Broker News, here live at the 4th Annual Investor Forum in Toronto. Welcome to the Big Story.
This is the biggest investor forum todate and we’ve actually three big stories. To kick it off, many were surprised when Finance Minister, Jim Flaherty stepped down and brokers were no exception. Here is one broker’s reaction.
Claire Draige, Mortgage Alliance Company of Canada
Claire Draige: It is a really difficult question, now that Jim Flaherty has stepped down as our Finance Minister. Sometimes it’s about the devil you know and the devil you don’t know.
So I think at this point it really is too early to tell, who his successor will be, but also more importantly what change are they going to make. Jim Flaherty made some changes that annoyed or frustrated mortgage brokers because the tightening in seemed to be just way too tight compared to the market absolutely, but I hate to say it, but only time will tell.
Justin Da Rosa: Rate sites are nothing new and neither are cancellation fees. But one broker is suggesting bringing to the two together to make up the losses incurred by flighty rate shoppers.
Michelle Watson, TMG The Mortgage Group
Michelle Watson: I think when it comes to charging cancellation fees, specially when you got a rate shopper who has found you on a rate site, I think it is important to be able to set that, buy that level of professionalism that we are not just here for free advice, we are not just here to help make the banks profitable but we are also here to provide education and advice as well as to make money for ourselves. And I think when it comes to charging those cancellation fees, it’s very important to show consumers that as a professional we need to and have and do incur ongoing costs and so if that cancellation fee is set at a reasonable amount where it shows our level of professionalism, but it’s not gouging the consumer I do think it’s a good thing. However if that cancellation fee helps maintain the client on the books for that mortgage broker I do think that perhaps they should turn around and use that as a way to perhaps compensate or entice the customer to provide even more referrals to them. So perhaps take that cancellation fee and turn it into something where it could be a positive in the end.
Justin Da Rosa: The Canadian dollar recently closed at 89 cents, which suggests that Canadians who invested in American real estate may soon cash out and reinvest in Canada. We are here with Developer, Brad Lamb. Brad, what do you think of this?
Brad Lamb, Lamb Development Corp.
Brad Lamb: I think that the US market, in lot of the places that Canadians have invested have been hot spots. Place like you know Las Vegas and Arizona and Florida, in some cases New York city and these places have done very well. So you know a lot of easy money has been made, so you may find Canadians cash out because of the weak dollar. If they are long term investors prepared to put up with the ebbs and flows of the dollar, but if they are there to make a fast dollar you will find a cash out. I myself bought a bunch of units in the States, I am going to be selling some of the ones I bought not because I want to cash out back to Canada but because I want to buy something different down there. So perhaps I think you can see that happen for you, but overall the United States is still one of the best countries in the world for investment.
Justin Da Rosa: Thanks Brad and thank for tuning into the Big Story or should I say three Big stories, here live in Toronto at the 4th Annual Investor Forum. I am Justin Da Rosa, take care.