“(Mortgages) are very profitable for the branch… the real competition for mortgage brokers is the person in the branch office down the road; that person is really concerned with how many mortgages, new money to the branch a mortgage can bring them,” Martin said during the online discussion last week. “(They) want to be identified as the primary bank – so that includes having a checking account, having a savings account, having your RRSPs, having your mortgage, having your line of credit, your unsecured car loan.”
And perhaps most interestingly, Martin revealed exactly how she tried to pry business away from mortgage brokers.
“When I was in banking, if someone would come into the branch – I’ll just kind of give you my spiel, what I used to say to clients, as a responsible bank employee who really wanted their mortgage dollars,” Martin said, recalling her script. “‘Mr. Client, I understand that they can give you 25 basis points and that’s fantastic; I would love to do that for you. But what your 25 basis points is going to buy you here and the bank: I’m here all the time.
“’If you have a problem, it’s my mortgage. I can call my back-office, I can give you service. Once a mortgage broker sells you that mortgage they’re done with you – they’re not going to give you any service, they don’t care about you; you’re the next client out the door for them.’”
Martin delves much deeper into the psyche of a bank employee on the 45 minute segment. To watch the entire episode, click here.