It may seem ironic to some, but many brokers believe offering consumer credit card products is one of the most effective alternative revenue streams a player can add to his business.
“You can take the high road and say that people have too many credit cards and too much consumer debt or you can take the ‘if you can’t beat them join them’ approach,” James Robinson of the Mortgage Centre told MortgageBrokerNews.ca. “We’re not here to be the moral police of people; if people are going to have credit cards and use them it certainly can’t hurt for us to provide the same kind of advice for our customers as we do on mortgages in terms of selecting what the best one is.
“We find ourselves constantly counselling clients on how to manage their credit so I think it’s a natural extension.”
Brokers often criticize the government’s focus on reining in mortgage debt as opposed to credit debt. This past December, the Bank of Canada stated that consumer debt is one of the greatest burdens on the Canadian economy and announced that Canadians currently carry a total of $1.5 trillion in debt.
And yet 22 per cent of respondents in a recent MortgageBrokerNews.ca survey said they have already diversified by offering consumer loans are credit, and 43 per cent admitted they are the best fit for mortgage brokers looking to diversify.
Other options included syndicated mortgages, insurance, and financial advice.
Robinson, himself, has not yet diversified his business to include alternative revenue streams, though he has admitted to researching possible areas to expand into.
Others have shied away from diversifying in fear of becoming a “jack of all trades and master of none”.
“My problem with diversification is that you’re not a specialist anymore,” Mike Maguire of Mortgage Wise Financial told MortgageBrokerNews.ca. “Diversifying into other areas doesn’t make sense; I used to sell mutual funds as well as mortgages but it’s hard to stay up-to-date on more than one industry.”
Maguire does, however, see the benefit of offering consumer credit products.
“Consumer credit products relate to mortgages -- debt is debt and I think it’s just an easy sell,” Maguire said.
Justin da Rosa
About Me
- Jackie Goodlet, Broker
- GTA, Ontario, Canada
- A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!
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