Should I pay mortgage broker fees – this post is simply a reiteration of a link to another forum that I commented on.
See what you think:
Original post (http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2008/02/mortgage-brok-1.html):
A client called us this week upset that his broker charged him a $5000 broker fee. So we asked where the broker got him approved. Much to our amazement, it was at a major “A”-lender. More surprisingly, the client’s credit was excellent.
My response:
Trevor Hickey said…
I am a mortgage associate in Calgary – I disagree with the claim that a broker should not charge for an “a” mortgage when the client has good rates – AS LONG AS THEY ARE CONSISTENT. What I mean by this is the broker should not just charge one person $5k and then charge a different customer $0.00 (if they are both in the same situation). If the broker wants $5k for their services – they can charge it (it’s a free market) BUT you won’t get many clients agreeing to it and therefore the fees charged on an “a” mortgage should be close to none (or nothing).
There are many many other variables than just the type of lender and credit. There is time needed to close, debt servicing, equity remaining etc. One other good thing about a broker who charges lots is that they are willing to work extremely hard to make any deal work because they are being paid so much – also these brokers (since they charge so much) will not have an abundance of clients and can therefore work extremely fast for clients that need it.
Lastly – it is unfair to criticize this broker for charging $5k simply because it was with an “a” lender – with that logic you are penalizing the broker for outstanding work – should he have taken the client to a private lender instead? Perhaps the broker was simply ta magician and got it done at an “a” lender when no one else could.
Feel free to put in your two cents by going here —> http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2008/02/mortgage-brok-1.html
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