NO RESPECT? RYAN REYNOLDS, POLITICIANS AND BITCOIN MILLIONAIRES BEAT MORTGAGE BROKERS FOR GIVING TRUSTED ADVICE
TORONTO, Dec. 4, 2023 /CNW/ - … Are Mortgage Brokers misunderstood? Maybe!
New research strongly suggests that the fees, services, qualifications and even intentions of Mortgage Brokers are (mostly) misunderstood by Canadians.
To take a snapshot of how Canadians truly regard mortgage brokers, The Real Estate and Mortgage Institute of Canada (REMIC), conducted an online survey of 1000 random Canadians.
REQUIRED ATTRIBUTION: Please attribute this as a survey by The Real Estate and Mortgage Institute of Canada (REMIC) in all mentions.
1. Bitcoin Millionaires over Brokers: Canadians don't covet Mortgage Broker advice:
Asked to rank who they would most like to take advice from, Canadians chose (1) parents, (2) Banks, (3) Financial Advisors, (4) Ryan Reynolds, (5) Politicians, (6) Bitcoin Millionaires, (7) Financial influencers, and (8) Real Estate Agents before (9) Mortgage Brokers.
2. Massively Misunderstood: Canadians don't actually understand how Mortgage Brokers work:
A combined 54.9% of Canadians mistakenly believe that Mortgage Brokers are paid by the homeowner (45.10%), or realtor (9.80%). Brokers are, in fact, paid by the banks via commission at no cost to the homeowner.
22.40% of Canadians mistakenly believe it would cost them $2,000 – $5,000 to work with a Mortgage Broker, and 13.80% think it would cost even more.
3. Compounded Confusion:
Asked why they would choose NOT to work with a Mortgage Broker, nearly half of Canadians (45.80%) responded that Mortgage Brokers are 'too expensive,' again with the misconception that the Broker is paid by the homebuyer. Additional objections included: 'they don't know me like my bank does (21.10%), they only care about making money from the banks (24.3%), banks can arrange mortgages quicker (22.4%) and mortgage brokers only work with banks anyways (15.8%).
"While Ryan Reynolds may be an awesome person to discuss Gin, Wolverine or Football with, it's disappointing to see him place 5 spots higher for trusted advice than Mortgage Brokers," said Joe White, President and CEO of REMIC. "All kidding aside, mortgage brokers clearly have a lot of work to do educating Canadians on how we work, add value and can offer much better deals and service than Canadian banks can."
4. Banks are blowing it!:
Only 32.60% of homeowners who worked with a bank said were 'happy with their rate.'
30.90% believe the bank did 'everything they could to get homebuyers the best deal.' Surprisingly (based on these numbers), 61.90% of Canadians would recommend a bank to friends or family who need a new mortgage vs. only 38.10% who would recommend a Mortgage Broker.
5. Credit where credit isn't due
A combined 79.3% of Canadians MISTAKENLY believe that bank employees must have mandatory Federal (16.8%) or Provincial (14.7%) training or (47.8%) have completed regulator-approved courses to work in the mortgage industry. In contrast, all licensed mortgage brokers in Canada must successfully complete certification courses.
6. Don't 'bank' on your best interests:
Asked if they thought a bank would give them a mortgage they couldn't afford, a combined 66.4% of Canadians said 'yes' (28.80%) or maybe (37.60%).
Over half of Canadians (55.50%) DO NOT believe that banks take quality of life into consideration when arranging mortgages.
"While banks may or may not consider quality of life for their mortgage clients, it's a cornerstone of how Mortgage Brokers are trained to put together ethical deals in the best interests of our clients. With the surge in interest rates and consequent increases in mortgage payments, there's never been a more important time for brokers to be looking out for our clients and offer them quick and realistic solutions," added White.
REQUIRED ATTRIBUTION: Please attribute this as a survey by The Real Estate and Mortgage Institute of Canada (REMIC) in all mentions.
REMIC's goal is to transform mortgage broker students into entrepreneurs by providing exceptional, ethics-based training approved by FSRA and the appropriate national regulatory bodies to meet the educational requirements for new agent licensing as well as courses designed to enhance the careers of current financial service professionals.
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SOURCE The Real Estate and Mortgage Institute of Canada (REMIC)
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