Friday, 15 February 2013

The evolution of the Independant Mortgage Broker in Alberta



 Independent Calgary Mortgage Broker


Back in the 1990s, Calgary Mortgage Brokers could be counted on your fingers and toes.  These mortgage brokers were the last stop for borrowers unable to obtain a mortgage directly from a bank or credit union. Back then a borrower had limited choice when it came to options.  The banks did not think that meeting with consumers in their homes outside “bankers hours” was worthy of their time. 

The role of the internet in retail banking was still a puppy back then, and over those twenty years that puppy has become a full grown Alaskan Malamute.  The full grown entity is independent and capable of withstanding the Canadian cold, which really has only increased the number of viable options for borrowers.   Independent brokers, who are versed in all the banks products, are able to offer not just a product line from one bank, but many.  Independent brokers, conduct their own research online, find the lowest mortgage rates, find the best mortgage products and have access to the lending models and broker kits to ensure it’s the best fit for client and lender.  They do not just use the big banks, but from Monoline Lenders, Mortgage Investment Corporations, and Private Lenders. In this ever changing and information abundant environment, the mortgage brokerage channel has emerged as a legitimate competitor. This is evidenced by the share of origination transactions increasing from 26% in 2003 to 38% in 2009 to 47% in 2012.  (CAAMP ACCHA- Annual State of Residential Mortgage Market in Canada)

Overall, this option has evolved from a disjointed “lender of last resort” network to a genuine option for all clients.  Important to consider is in 2012 new rules were implemented to cool the Canadian housing market, these forced many clients out of the Big 5 Banks and into the world where only Independent Mortgage Brokers have access thus in 2013 we should see this number rise even more. In most cases the Alberta Mortgage Broker does not even charge a fee.

The Calgary Mortgage Broker is able to shop the big banks for the lowest mortgage rates, the best mortgage product at the time of placement, and ensure that the fit is just right.  


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