Why would anyone ever consider using a mortgage broker?! I polled several borrower and lender clients recently to get their candid thoughts on this question. As a mortgage broker myself, naturally this could be somewhat self-serving, but it was also relatively risky because it could backfire if they were to answer: “Well, I hadn’t considered this recently, and so perhaps you raise a good point that I shouldn’t be using your services at all!”
But the feedback was simple and consistent. Borrower clients indicated that their main reason for using a mortgage broker was because they were either unwilling or unable to take the time to source the best loan pricing, terms and conditions from too many lenders in the market. Lender clients, on the other hand, indicated that a solid borrower landing on their desk with little marketing effort allowed more time to manage their loan portfolio.
Of course neither side could resist adding why they would elect not to use a mortgage broker in the future! Borrowers almost unanimously complained that their “former” mortgage broker was unresponsive and therefore unreliable (such as being regularly tardy with returning phone calls). And lenders admitted that they cringe when their caller ID displays the number to a mortgage broker who regularly pushes loans that are way outside their risk acceptance criteria or who sends them inaccurate information.
Aside from using a mortgage broker who is professional, experienced and trustworthy, the only other response I made (which of course was self-serving) was that a good mortgage broker should offer independent advice and an unrestricted selection of capital sources and loan products to borrowers; whereas to lenders, a mortgage broker should be able to strengthen the client relationship so that the business conducted is long term and lucrative. Pretty simple.