Canadian mortgage brokers got a vote of confidence on Wednesday when it was announced that more homebuyers are turning to brokers for financing.
The results from the May 2013 Canadian Mortgage Market Report indicate that 25 per cent of mortgages were obtained through brokers, while 57 per cent came from financial institutions.
When searching for a mortgage, Canadian homebuyers aim for the lowest possible interest rates. An increasing number of people turn to brokers, as their interest rates tend to be lower. Banks tend to offer higher rates, which repels potential clients.
In addition, as one respected broker notes, the banks tend to prefer a hands-off approach when dealing with mortgage seekers.
“People do require, and are looking for a little bit of hand-holding and more information to help them with the financial decision,” says Mortgage Alliance’s Marcel Greaux. “You’re not going to get that with the banks.”
Brokers prefer a more personable approach when dealing with clients, while banks focus less on experience and more on bureaucratic processes.
“At the bank, you walk in, fill out some paperwork, and they let you know if you’re approved,” Greaux says. “The person doing the mortgage application is often times not a mortgage specialist.”