Quote:
Originally Posted by Slava
Well to be honest I don't know how much a mortgage broker makes on a mortgage? I just know that as an advisor my primary source of income is not through Manulife One...then again I don't recommend it for every client. I have some clients who have never heard about this from me because I know their financial situation and habits and I just think it would be a mistake for them and they could get into more trouble than its worth.
Manulife clearly makes a few bucks off these plans, as does any financial institution lending money. Part of that though is that they are taking the risk by lending the funds in the first place....according to some people in this thread its a huge risk because the properties that they are lending against have been due to see their values fall off a cliff anytime over the past two-three years!
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It stands to reason that if people selling mortgages through mortgage brokers can make money at variable=2.2%, Manulife has some $$ to play with if they're lending money the same way at 3.5%. The risk is the same, but they're charging way more.
My guess on mortgage broker compensation is in the 1-2 months payment range, although I'm really not sure. I'm basing that off incentives I've seen where mortgage brokers have offered ~$400 in legal fees paid for your business, so it stands to reason they're getting more than that.