Is the person referring you to a Bank for your Mortgage being paid by that same Bank or Trust Company or Credit Union?
Many lenders these days use financial incentives to get referrals from Real Estate Professionals and Financial Advisors. There’s nothing wrong with it provided they disclose it to you and you are aware that you might not be offered the many options available in the market place.
A referral is usually a good faith transaction, meaning that one professional knows of another professional who can serve the needs of the client. No money changes hands.
But that’s’ not what’s going on these days.
As a consumer you should be asking yourself if the referral from your professional is in your best interest. No one lender can provide the best solutions every time. A person who refers the same lender to each borrower, simply to receive compensation is not doing anyone a favor, except themselves.
Don’t take my word on this, read the article in the Globe and Mail
Mortgage Brokers have access to so many lenders and mortgage options. Banks can only access their own product shelf, so you may not be exposed to the best rates or terms from a single Bank, Trust Company or Credit Union!
Do your homework! Research the web! You deserve the right solutions when you need a mortgage.