The Mortgage Broker channel in Canada is highly competitive. Research shows that consumers recently renewing their mortgages with Mortgage Brokers came out way ahead of those renewing with other channels.
Maritz Research Canada recently conducted a study of 2,000 Canadians. The study focused on Canadians' opinions of the mortgage industry and specific feedback on their mortgages and experiences with mortgage professionals.
Those who renewed or renegotiated recently with a Mortgage Broker reported an average rate decrease of 1.4 per cent from posted rates, compared with 1.0 per cent among all renewers. It is easy to understand why Broker market share is 27% on early term renegotiation and has potential to grow much higher.
Just one-third of Canadians say they have a good or full understanding of the services provided by Mortgage Brokers. The importance of awareness is clear: Broker market share is roughly twice as high among those who have a good or full understanding of Broker services when compared with those who have a lesser understanding.
The findings demonstrate that Mortgage Brokers could benefit from better explaining their services to homebuyers in their local communities. Satisfied clients can also help their friends and families to save on mortgage renewals and renegotiations, by passing on their knowledge to alleviate any uncertainty about the Broker process.
Calculate the potential payments on your next mortgage using the CENTUM Mortgage Calculator amortization tool.