Brokers now have a new arrow in the quiver, with one credit union announcing Thursday its 2.99 per cent five-year fixed rate that can also be applied, retroactively, to deals funded in the past 30 days.
“We are long-term relationship minded and we build partnerships; we’ve looked long at how to go to the market in the best way and we’ve come up with a program for brokers that has been extremely well received,” Richard Senechal, CEO for DUCA credit union told MortgageBrokerNews.ca “We’re making sure that we can deliver what we say we will (deliver) and fulfilling our promises is very important to us.”
On Thursday, the credit union announced it has dropped its five-year fixed closed mortgage from 3.09 per cent to a competitive 2.99 per cent and that the reduction will also be applied to any deal negotiated within the past 30 days.
The retroactive rate rejigging will have no effect on broker commissions for those prior deals.
“We went straight to the (mortgage) holders and we told them (about the change) because that’s what they bought on,” Senechal said. “The mortgage brokers sold it in good faith at a particular deal with them and we’re not trying to penalize anybody.”
DUCA has only operated within the broker channel for a year but 50 per cent of its residential mortgage business is funded by brokers, according to Senechal.
“What (this product) does is it provides a steady channel for two audiences -- the broker and the consumer,” he said. “The broker is looking for long-term relationships and consistency and a level playing field so that they don’t get undercut or subject to the change in mindset that happens in some financial institutions.”