It seems that a number of Bank Mortgage Representatives (Specialists) have been holding themselves out to be “Mortgage Brokers”. This week, one Bank Representative in Toronto sheepishly and without comment, withdrew the “Mortgage Broker” title from his website after being challenged by an industry publication.
Another trend in the unregulated world of the Internet is for some lenders to include the term “Mortgage Broker” in their key words so that when searching for a Mortgage Broker on Google, their link will show. In a way, that can be flattering to the Broker industry.
Discounting the fact that in most Provinces it is misleading and unlawful to call yourself a Broker when you are not, is there a difference between Bank Mortgage Rep’s and Mortgage Brokers? You bet there is!
First and foremost, a Bank representative is authorized to present only their employer’s products. A “Broker” on the other hand is not allied with any Lender, but is free to shop the entire market for the best deal for his client. It follows then, that the Broker is not conflicted between the interests of the lender and the borrower. The Bank Rep, on the other hand may be incented financially to offer higher rates or to recommend other of his employer’s products to maximize Bank profits. Is that a conflict? You decide.
In our admittedly biased view of things, a Mortgage Broker is better equipped to serve your needs with wider range of products and solutions not available from a Bank Representative.