People often wonder why they should entrust the services of
a Mortgage Broker over that of a traditional bank. Why should they trust
someone other than the person they have been comfortable dealing with for
years?
Did you know that most bank representatives are required to
meet certain “Sales Revenue” (often referred to as SR) goals? These goals are
reviewed on a quarterly basis and usually increased as soon as you have met
your previous goal. Not reaching your target will impact your Performance Bonus
at the end of the year, never mind also having to listen to your manager harp
at you!
They will actually earn more “Sales Revenue” if they sell a
higher rate mortgage or a longer term. They will actually earn negative Sales Revenue if they discount the rate too low. Do you think they are
willing to compromise meeting their Sales Revenue goal or earning a higher
Performance Bonus in order to give the client a better rate? Not likely. It
becomes more about what is best for “bank representative” or what is best for
the bank rather than what is best for the customer.
How do I know this?
I worked for one of the big 5 banks for seven years.
I now work as a Mortgage Associate for one of Canada’s
leading Mortgage Brokerages. So if you want unbiased advised about your
mortgage, speak to an independent Mortgage Associate/ Specialist not tied to
any banks.
I rest my case.
Signed Anonymous
Ex Banking Representative
