can no longer compete by simply having a branch
on the corner and waiting for someone to walk in
and ask for a mortgage.
Independent Mortgage Brokers now
operate across the country on an electronic delivery
system, which provides up to the minute information
on over 40 lenders, including most of the major
banks. This information is supplied by the lenders
in the hopes that the independent brokers will
have broader access to the public and therefore
deliver more business.
Since the Broker will return again
and again with more mortgages, it is a highly
effective way for the lenders to increase their
business. The broker will deal directly with the
client on behalf of the lender, saving the lender
the cost of administration and other associated
overhead. The lender only pays a fee to the broker
when the client takes a mortgage. Without the
costs normally associated with branches, salaries,
benefits, etc., the lender can offer the client
a better rate.
Mortgage Brokerage is one
of those truly rare situations in life where it
is WIN/WIN for everyone involved.