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Mortgage Broker News | 29 Mar 2011, 03:00 PM Agree 0
Mortgage lender MCAP is taking direct aim at the big banks, with bonuses for brokers bringing in clients who would otherwise renew or refinance with the Big Five.
  • Sudershan Kaur | 31 Mar 2011, 04:33 AM Agree 0
    I think this is a good idea but M-Cap has to teach the brokers about all Banks products and how to compete them to bring the business to M-Cap not only the incentive bonus works.

  • Calgary | 31 Mar 2011, 05:26 AM Agree 0
    Kudos for MCAP's proactive approach to analysing what the Broker Channel needs to do & be aware of to increase market share. Just remember, when you throw stones expect to get some thrown back & is this a good idea targeting these monster Banks & challenging them to an all out price war?Im sure no one will complain about getting paid more to pirate these banks, but is this the long term solution our industry is looking for? Dont think so, we need to get back to leading edge products and innovation that is unique to our industry. This is where our gains will truly be made.
  • @kiltedbroker | 01 Apr 2011, 03:12 AM Agree 0
    I love what MCAP is trying to do here, however the execution is a little misguided. I agree that the broker channel should be looking for ways to take market share from the Big Five, but "Calgary" nailed it, starting a price war doesn't seem to be picking a fight we can win. Increasing compensation is a flash in the pan solution that will only drive a little business from brokers placing business with the wrong motivation. A 5 BPS increase until June 30th makes little difference to my brokerage.

    It would be nice if efforts in this matter were directed towards creating a long-term sustainable client education campaign where all non-bank lenders were invited to participate. I think MCAP is asking the right questions and having the right conversation, I just don't think this is right the answer.
  • Torrington Capital | 01 Apr 2011, 05:37 AM Agree 0
    I am certainly not going to choose a lender based on 5bps, however MCAP raises some excellent points. The best way to grow the broker channel is to take business away from the big banks and education is the key, not compensation (more business = more money anyway.

    Client education is a big part of this and getting the non-bank lenders together would be a great idea (and maybe this is where this will lead). In the mean time it is up to brokers to educate their clients and you should know or have access to ALL of your competitors product info whether you can sell them or not. Pick up the phone and call the banks, make an appointment with the local branch or mortgage specialist and learn about their products. It is pretty easy to compete with the banks if you know exactly how their products work and how what you have to offer compares.
  • @kiltedbroker | 01 Apr 2011, 06:17 AM Agree 0
    I couldn't agree with "Torrington" more, I would rather increase my commission as a result of customer education, additional volume and increased market share, than making an extra 5BPS on a deal.
  • Marcus | 24 Dec 2013, 10:12 AM Agree 0
    I have a mortgage from MCAP. The rate is v. low, actually the lowest available at the time by .1%. The low rate is the single, solitary positive benefit I have experienced so far in my rel'n with MCAP.
    First, they gave us a HUGE hassle in putting my wife on the mortgage. They would have excluded her from teh mortgage and from the title deed of the house, except for a very competent and assiduous employee at True North Mortgage, our mortgage broker, who eventually closed the mortgage the way we had originally insisted it be closed - with my wife's name on it and on the title of the house.
    Next, if you want to pay an additional amount on your principal, they have a v. awkward and strict policy. You have to "request" this ahead of time, deposit the money in your bank account, and then wait until your NEXT mortgage payment is withdrawn. This means your money is sitting in your account for as much as a month, collecting no interest. Trying to time the deposit/withdrawl accurately caused us a large hassle, and we were hit with some exorbitant fees, which we eventually ironed out, although through more hassle. As in other corporations with which I have done business, here also the front line people know very little, but are consistently obstructive. Just go above their heads as quickly as possible. Eventually you will reach someone with some discretion.
    Third, there is NO ONLINE ACCESS to your MCAP account. You cannot check to see your amortization schedule online, you cannot check to see how your amortization schedule has changed after additional payment to your principal, AND THEY WANT TO CHARGE YOU $25/HOUR for secretarial work if you want the history on this! In other words, they lack the online info, and want you to pay them to calculate everything manually, as if it were the customer's fault they are in the dark ages with respect to the internet! What a farce.
    Fourth, their exit fee, which you pay at the end to close the mortgage, is the highest relative to all the other lenders we researched.

    Bottom line: So far, this mortgage company has been an enormous pain. Previously we had another lender that was slightly more expensive on interest, but without any of the hassles, limitations on information and payment timing, and without the extra fees we have experienced with MCAP. If I could go back, I would have stayed with our old mortgage lender (ING).
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