We all know that anything mortgage brokers and their brokerages do affects the consumers that use them. So what’s going to be happening to this industry within the next 7-10 years? And how is that going to affect you? Michael Sjerven, a principal broker with Verico Vivid Mortgage in Vancouver looks at the biggest changes he believes are on their way.
One national license, with one national designation
Currently if a mortgage broker wants to be able to find mortgages for consumers in Alberta, they need to hold an Albertan mortgage broker license to do so. The same holds true for British Columbia, Ontario, Newfoundland, and all the other provinces and territories. Sjerven believes that in just a few years, there will only be one license brokers need to apply for, and that will give them one designation to find mortgages for consumers anywhere in the country. This will allow out-of-province consumers to get the best deal from any broker – and not be restricted to what the brokers in their province alone are offering.
One national association, with one association for each province
Currently there are at least two national mortgage broker associations (MBABC and CAAMP) and multiple provincial associations. For each association a broker belongs to, they must pay dues and membership fees and when there are so many, those costs can amount to a great deal. If things go the way Sjerven believes they will, brokers will only have to pay two fees (one for national association, one for provincial.) That means for the consumer they will have fewer operating costs passed onto them, and mortgages could possibly become even cheaper.
One national advertisement
Why is it that you’ll only see one commercial covering every real estate agent in Canada? And just one commercial for insurance brokers? Heck, often there’s only one commercial for people looking for doctors and dentists too! So why are we open to countless mortgage broker commercials, sometimes for brokers that don’t even work in our province? By 2020, Sjerven hopes that this will no longer be the case and that, just like all those other industries, all mortgage brokers will be promoted using just one commercial.
Minimum experience and/or education requirements
Sadly, the requirements as they stand to become a mortgage broker are very few. While you must be licensed, thereby showing some sort of knowledge about the industry, there are no courses or official training that needs to be met. And theoretically a broker could go out and get dozens of clients on the day they become licensed. Sjerven is hoping that by 2020, there will be a better requirements system in place that will provide consumers with only the most knowledgeable and qualified mortgage brokers. The benefit to borrowers here is obvious.
What do you think? Will these changes help to make a more positive impact on the mortgage broker industry – and will you benefit from them? Which potential change would you most like to see happen by the year 2020?
