Quote:
Originally Posted by heep223
Though I was saying that 2 years ago when I took out my mortgage and I would have "won" if I went variable....I still would not have done anything differently.
Anyways didn't mean to litter this thread but it's an interesting subject. Again I'm not a mortgage professional but if the professional is compensated more for selling certain types of product it certainly can create a conflict.
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I don't consider it 'littering my thread', although your first post or two seemed like more of an attack than it did a discussion starter. I do enjoy the conversations and am happy to join in to give my opinion.
In regards to your first point, you answered your own question. I tend to point people in the variable direction because historically speaking, they do win vs. fixed rates. Again, there are definitely certain clients that I will push towards fixed rates as well depending on suitability. With good strategy I'm still confident that a variable mortgage can be beneficial even with the 'uncertainty' existing. This is why I remain heavily involved with my clients post-funding, especially those with variable rates mortgages. They all (with their consent of course *CASL*) are added to my rate mail that relays information to them once a week, along with a monthly newsletter with more in-depth info.
As for the bolded part - I could offer/push products that do compensate me much more. There are brokers that do that, but that's no different than any industry. 10 year fixed rates, as ranch said, do pay the most. I've never done a single 10 year mortgage, and generally don't even post them on my social media rate updates. I think pushing products that pay more but aren't the most suitable is EXTREMELY shortsighted, and makes zero sense to me. As a fairly new broker, I refuse to build my business that way, nor will I in the future. I'm doing the volume in my 2nd year as a broker that most don't do until year 5/6, and a lot of my business comes from referrals of existing clients.