Why use a Calgary Mortgage Broker?
Calgary Mortgage Mobile - Randy McGuire
When you go to a bank to get your mortgage, the relationship between you and the bank is strictly lender-borrower and “caveat emptor” (let the buyer beware) is in full force.
It is settled law [in Canada] that in the absence of “exceptional circumstances” or a “special relationship” …. the relationship between a financial institution lender and a customer borrower is, generally, a “purely commercial relationship of creditor and debtor” and does not give rise to any duty of care…. and in particular does not result in any duty which would require the bank to advise the customer not to undertake the loan…. (from: Canada: Duties (Not) Owed To Borrowers by Jeremy D. Burke, LLP )
The courts have determined that you should realize that the bank is a corporation whose sole purpose is to realize a profit and that appropriate measures to protect your personal interests should naturally arise from this realization.
A Calgary mortgage broker, on the other hand, works as an advisor or guide and has what is known as a fiduciary duty to you. To me this means that in my dealings with you, your stated interests are paramount and every action I take will be in your best interests. To properly fulfill this role, the government requires Calgary mortgage brokers to be licensed (unlike bank employees). Licensing though, is a bare minimum and Calgary’s best mortgage brokers continually upgrade their education, voluntarily adhere to the CAAMP code of ethics, and otherwise provide their clients with the best service and guidance possible.
I don’t know why I am being drawn to your blog. You really make all industry professions look bad. You slammed the banks by saying that their reps are not licensed. The fact of the matter is that they are representing the lender and in my opinion, don’t need to be licensed. It is kind of like having a buddy replace your brakes. Sure, he doesn’t have a license, but he does have the proper tools and has completed this task on cars like yours many of times. He doesn’t have to be licensed to complete that task. The real problem with bank employees dealing with mortgages is simply put, they are trained to sell on product only, THE BANKS PRODUCT. Yes, they have no fiduciary responsibility because it is a transaction, if you the client fits in this box, ten this product is for you. THE END. WOW Randy, you are really given brokers a bad name. I can appreciate your enthusiasm, but tone it down a little, you don’t know everything. If I may suggest, please, for heavens sake please have someone else write your blogs for you. I will not be returning and am confident that you will not post this message, so I will copy your nonsense blog and post it on my page unless you gain a little more knowledge before you speak. Again, I beg you, don’t make BRokers look stupid. I like the fact that I can get a credit bureau pulled at one location and have it shot out to a multitude of lenders and allow me and my Mortgage Associated to choice which product is best for my needs. 1 credit pull, 1 hit on my file, sweet. I don’t deal with him because he is a god of mortgages, I like him because he doesn’t feed me BS about how good he is or how bad the bank is. That is fiduciary duty in my opinion. What you are doing is calling yourself an expert when you are clearly not.
I’m glad you have had a good experience working with a Calgary mortgage broker. His failure to point out the benefits of working with him as opposed to the bank might impress you, but is not the definition of fiduciary duty.
Fiduciary duty is the obligation to place a client’s interests above all other interests. I have this duty to my clients and take it very seriously. Bank employees simply do not have this duty toward their clients. Whether this is a good thing or a bad thing is for each client to decide for themselves. I think my clients take comfort knowing that I’ll making choices based on what benefits them rather than on what will make me the most money.
Thank you for your interest in my blog.