19 August 2010
“Over the last three years Canada’s broker count has seriously increased, but it’s been quite stable during the past 12 months”, – says Jim Murphy, CAAMP CEO. This year in Ontario, for instance, they saw a drop in their license renewals.
There are many negative factors that can influence this industry: strong competition, home price decline, rate hikes, reduced commissions etc. Even in the last few months two brokerage CEOs announced they expect broker numbers to reduce in the nearest future.
That’s why it’s very important to choose a broker who spends 100% of his time originating mortgages. In our opinion, such broker should meet the following requirements:
1. Be licensed exactly in the mortgage industry over 2 years
2. Have closed mortgages for at least $10 million during the previous 12 months
3. Know all advantages and disadvantages of the main mortgage products outside the broker channel (e.g. RBC, BMO and Manulife).
4. Have a serious professional web presence (the official site is required)
5. Reply to emails within eight business hours
6. Return telephone calls right the same day
7. Find the best mortgage for your individual situation and explain all the details in plain language.
8. Find you a rate that’s within 10 bps (0.10%) of the best available for the mortgage product you need.