This is a question I’ve been asked numerous times over the past 8.5 years. When I first entered the industry I used to answer this by informing clients a broker works for you and not the lender, better rates typically, and free to use. Now in my mind that should be enough to convince a person that their interests are better served through a broker than a banker. However, there were some clients that still would not commit to working together. I wasn’t sure if I didn’t explain it properly, did the point get missed, or if it was just a hesitation from being so engrained to go to the bank.
I’ve spent a lot of time thinking about this and how to break through that barrier. Being a past banker with a financial institution and having the pressure at times of selling a higher rate to meet volumes while not truly believing that the rate or the service is warranted, is why I left to become a broker and even the playing field for my clients. So how do I get this message through to clients?
Hopefully through years of commitment to education I’m slowly creating understanding one at a time. Maybe even this blog will help, who knows.
But back to the topic, the true value to me in being a mortgage broker is understanding policy. Great rates, independent advice, etc. are all part and parcel, but what truly makes the difference between great brokers is understanding policy. Now as a broker I have over 30 lenders and 30 difference policies to work with. You wouldn’t believe the amount of times we’ve seen clients declined by their bank and then we get them approved with a different lender, all due to lender policy. We don’t make lenders give mortgages and there is no magic involved, but the reason 30 lenders exist is because they all have different niches they fill and we try to match you with the best suited lender for your situation leading to a more favorable outcome for you. By understanding these niches/policy, in my mind, is why a client should use a mortgage broker. Let me re-phrase that, should use us as their mortgage broker.
By: Narish Maharaj