The online mortgage industry has grown exponentially in the past two years. The success of Internet-based mortgage planners and lenders (like ING and PC Financial) is clear validation of this trend.
Nowadays, Canadians are as comfortable arranging a mortgage online as they are in opening an online stock brokerage or bank account. Mortgage shoppers no longer need to meet face-to-face to have a relationship with their mortgage planner.
Two things have been driving the popularity of online mortgage planners:
- Convenience: Customers want instant access to their mortgage advisor and the online model achives this. Internet-based mortgage planners are available by phone or email, often outside of banker's hours. There is no longer a need to battle traffic or take valuable time out of the day to visit a traditional "brick and mortar" branch office.
- Cost: The mortgage business is all about scale. High-volume online mortgage planners almost always advertise lower rates because their overhead is lower and their buying power is greater. Moreover, large volumes qualify online mortgage brokers for lower wholesale rates, from a variety of lenders--not just one.
That said, not all online mortgage planners are the same. Here are some thoughts to keep in mind, and a look at how we compare:
| What To Look For... |
Why MyVMB? |
| Reputation |
Do business with well-known brokers that maintain a quality web presence. |
My Virtual Mortgage Broker (MyVMB) was founded by Melanie and Robert McLister. Melanie & Robert first gained prominence as Editors of Canadian Mortgage Trends; Canada's most-popular mortgage news site. Mortgage Architects is our chosen brokerage of record because it is widely viewed as having the most respected standing in the industry. |
| Volume |
High volume means lower rates and greater objectivity. Use brokers who fund a minimum of $25 million a year in new mortgages. |
The MyVMB team funds well over $50 million a year in mortgage volume, putting us among the top mortgage teams in the country. This affords us volume status with multiple lenders and ensures we are not compelled to recommend one lender over another to keep this status. |
| Knowledge |
Use brokers who are acknowledged by respected sources. |
In three short years, our team has been featured in over 40 media stories (ranging from BNN and the Globe & Mail, to the Wall Street Journal) and has received four Canadian Mortgage Awards nominations for best customer service, best new broker, and best online presence. We won our first award in 2008. |
| Objectivity |
Find a broker who quotes all lenders, not just those in the broker channel. |
Few mortgage planners quote lenders like RBC, BMO, and Manulife because they don't get paid by them. MyVMB always compares every lender objectively. This honest one-stop shopping principle is a key advantage to our service. In fact, we refer millions of dollars of business annually to lenders outside the broker channel, simply because they have the best deal for our clients at that time. |
| Advice |
Find a broker who bases advice on realistic numbers and research. |
MyVMB utilizes proprietary tools like Rate Simulation Analysis (RSA), long-term amortization comparisons, and an exclusive industry-wide rate database that is updated hourly. We couple this quantitative analysis with future rate expectations, detailed product comparisons, and a firm understanding of the available rate research, |
| Licensing |
Deal only with online brokers who prominently display their license. Then, check if the license is in good standing. |
Each of our Mortgage Architects agents are licensed by the appropriate provincial regulatory body (e.g., FSCO in Ontario, FICOM in BC, etc.) We post our license numbers at the bottom of our web site, and each agent's license can be verified by calling these agencies or by searching their online agent databases. |
| Industry Affiliations |
Look for brokers who are members of a major self-regulatory organization, and check their membership online. |
Our Mortgage Architects agents are all members in good standing with the Canadian Association of Accredited Mortgage Professionals (CAAMP), Canada's largest and best-known industry association. Our membership can be verified at CAAMP's online broker directory. We're proud to have never had a single customer complaint, with CAAMP or any other regulatory body. |
| Security |
Choose brokers who are serious about security. |
MyVMB agents adhere to all federal PIPEDA legislation, provincial regulations, and CAAMP guidelines regarding client information security. Our application system is designed from the ground up for security--with application time-outs and 128-bit data encryption. Moreover, it is our policy to never request sensitive information (like SIN numbers) by email. |
Our planners are proud agents of Mortgage Architects, our broker of record. Call us any time with questions, toll-free, at 800-280-2460. |
