Young mortgage brokers the next gen of advisors?

Young mortgage brokers the next gen of advisors?

Young mortgage brokers the next gen of advisors?

Though a younger demographic is needed to replace retirees in the financial services industry, whether new entrants have the proper qualifications, ideals and level of commitment are of concern - particularly if they are doubling up on their duties.

“Mortgage brokers are not moving in the same direction that I feel the financial planning profession is supposed to be moving in,” explains fee-only advisor Matt C. Altro, partner  and chief operating officer at Altro Levy LLP. “Anytime you are selling another product, for me, it is not the best situation for the client. It’s not my version of financial planning.”

Though he is not against the financial-advice add-on, Paley believes mortgage brokers, who typically don’t see see their clients on a regular basis, would struggle to meet their financial needs..

“I see a logical connection in the purchase function, but I’m not sure if a mortgage broker would be willing to service a client on a long-term basis,” he says. “I do see a potential conflict of interest, and that will always be there.”

What do you think of the young mortgage broker turned financial advisor? Tell WP your thoughts in the comments box below.


read more > 1 2

  • Lynda Weinrib 2013-11-08 10:21:15 AM
    In my opinion, any designation is only a starting point in gaining knowledge. And most designations, just like a BA, begin with minimal requirements. It is only through experience you learn to apply the theory learned in the courses - whether they were at University, at college or from an online course -to real-life situations so that you can actually help clients.
    Post a reply
  • Jim R 2013-11-09 11:03:05 AM
    Mortgage Brokers have an incentive for leverage investing.More debt for clients may not be in the best interest for the client. Broker gets paid for mortgage, paid for investment, Govt gets taxes for investment income and client takes all the risk of losing his house.
    Post a reply
  • JSydneyH 2013-11-14 8:03:20 AM
    Interesting comments. I personally (as a mortgage broker and financial coach) have had to rescue people from an overzealous CFP who leveraged their real estate to the point they were about to lose their house.

    So I argue that anyone holding an MFDA or IIROC designation not be permitted to become a licensed mortgage agent in the province to prevent that from happening.

    The CFP designation has become so watered down and meaningless that it is irrelevant. If every bank employee has it and we know they provide only bank specific advice to their customers, so why carry the designation?
    Post a reply