Should Canadians use a Mortgage Broker or a Bank when getting advice ?

Very Strong words from Top Home Mortgage News… But that’s why I like it !, they bring up great points. It makes you ask…. Should Canadians still be referring mortgage advice through Bank Branches?

Have an interesting read below….

Mortgage Professionals want to be Regulated; Banks don’t want this. So why do the banks want unskilled workers?

The bank has many reasons for not wanting to have skilled employees. The main reason is because of salaries. The bank would prefer to have 100s of unskilled employees that they can easily replace, and they want to be able to pay these employees a fraction that they would pay to a regulated professional. Banks want to teach their employees the bare minimum to get by, then have them sell as many mortgages as possible.

In this process, many borrowers will lose. They will lose by not being educated, not understanding the risks, and buying properties that are too expensive. The default rate of borrowers will be much higher than a mortgage professionals book of business. This is because the mortgage professionals clients are less likely to over spend, live beyond their means, and manage money improperly.

The mortgage industry doesn’t pay for customer service; however, with a commission income, it depends on bulk transactions which also puts the end client at a loss.