Banker turned fee-only advisor reveals all

Banker turned fee-only advisor reveals all

Banker turned fee-only advisor reveals all

“(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.

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  • Daniel Hanzelka 2013-10-25 9:01:02 PM
    It is great to see that people are willing to stand up and are willing to expose the financial industry for what it is. Consumers are more educated and want to hear the truth. In the long run it will benefit advisors, consumers and the industry. We need to understand that the problem is not with people there are some great people in the industry the problem is with the institutions and industry. It is time to be open about what is going on behind closed doors.
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