best advice
Mortgage brokers discuss why the best rate does not always equal the best mortgage – and why expert advice is essential during the biggest financial transaction most people will ever do
A BY LISA GORDON
ny mortgage broker will tell you that the first question a borrower usually asks is, “So, what’s the best rate you can get me?” But when it comes to the biggest financial purchase you’ll ever make, there’s a lot beneath the surface when it comes to choosing the best mortgage. In fact, the best rate does not always equal the best mortgage. In the past, financing a home purchase involved going down to the local bank and basically taking whatever mortgage they offered. There wasn’t a lot of choice for buyers, who found themselves pigeon-holed into standard, one-size-fits-all mortgages. “It’s like going to buy a TV and you can only look at Sony models,” said Kristi Knippel, a mortgage broker with One St. Mortgage in Saskatoon, Sask. “Or, running shoes. What if you don’t like Nike? You have to have options that fit and are comfortable, and (when it comes to mortgages) that’s what a mortgage broker provides.” Knippel, who has been working in the financial industry for 28 years, left her role as a big bank adviser because she felt constrained when it came to offering clients the best products. “I view myself as a holistic adviser and I like to find products to match the client’s lifestyle,” she explained. “As a mortgage broker, I can offer more options. When I deal with a client, the only thing I look at is what is their current situation, and what are their needs today and in the future? I never view myself as a salesperson. I’m there to provide advice. If someone calls in, I give them my best advice even if it means returning to their existing lender.”
While Knippel said she sometimes loses business by referring people back to their current lender, she has no regrets. “I’ve always operated by the idea that if I do good by people, they will do good by me. I tell them they can pay me by recommending me to their friends or family – they can be an advocate for our industry, understanding that without mortgage brokers, quality will diminish.” When she worked at the bank, she admitted that she had no idea what other lenders were offering. But, as a broker, she knows what’s happening at all the institutions. “If I don’t, I have contacts and I can find out. Banks don’t know, nor do they care, what others are offering. They are responsible to their shareholders if they don’t perform financially, so they sell their product and no one else’s.” Knippel considers herself a professional who offers a top quality service to her clients. “It’s a business like any other business, where
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I SPRING 2022 CMBA-ACHC.CA
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