On the surface, brokers and branch reps appear to be the same and are terms often used interchangeably. And truthfully, we are paid the same way – by the lender, after a mortgage funds.
There is a great deal of misinformation however, and some myths to be debunked, about the differences. For example, I just recently heard a branch rep tell a client that by working with me, they’ll have to pay a broker fee, or I hear hesitant clients who reach out and say “My friend told me brokers are only for people who can’t get approved at a bank. Should we be talking to them directly?”
The reality is that we work with ALL different types of borrowers and there are times when we arrange for alternative or private lending solutions that do require a fee (fully disclosed up front of course). Personally, over 95% of my book of business is with traditional lenders for A+ clients and no fees.
This is also a testament to brokers having access to dozens of lender products, each with their own rate, terms, conditions, etc… A branch rep has ONE lender product – they are NOT brokering the mortgage and are NOT able to provide unbiased advice about the best solution for a client.
A big distinction: brokers need to hold a valid license with the provincial regulator, maintaining a standard of service and quality of advice and compliance that they are held to; banks and credit union reps do not hold these licenses as the government allows them to be exempt from requiring one.
It’s important to know so that you can guide clients in to getting well-rounded advice from an independent 3rd party and ensuring they are placed in the most appropriate mortgage to meet their needs.
The key is to work with somebody that you know, like, and trust as paramount to all else, with a clear understanding of the services they provide.
If you’d like to see what other tips our mortgage expert, Julie Sheremeto, has for you…visit her You Tube channel. It is an amazing source of information and includes up to date mortgage information, frequently asked questions answered and more!
If you would like to be put in touch directly with our mortgage team, comment below and we will reach out!