A New Site for Private Mortgages – Consult with Bruce Coleman, Vancouver Mortgage Broker
Canadian Mortgage News
CMI 101 Series
Dreyer Group 101 Series
First Time Buyers
Home Buying 101
Home Insurance
Latest News
Mortgage Rates
Refinancing
Self Employed
A New Site for Private Mortgages
One of the newest sites set up to assist independent mortgage brokers help their non prime borrower clients find suitable lenders is called Strategic Matches. The purpose of this site is so these “B” borrowers can find the best possible deal online through their broker.
This site is simple to use. All the broker has to do is complete their client’s application and submit tit o the site. The results show all the lenders which meet the borrower’s needs. The broker can send their client’s application to either just a single lender or to any number of lenders that show up in the results.
The lender has 2 days to reply by either making a commitment or getting in touch with the broker. After the lender provides a quote, then the broker’s client has 2 days to accept the commitment.
The Advantages of Strategic Matches
- Many brokers prefer to use lenders they know. Strategic Matches allows the offer to come from lenders they don’t know and exposes the deal to more lenders which can help the borrower have a better chance in finding a better rate and even possibly better terms or fees.
- Both the broker and borrower can save time as a broker has to spend more time manually when shopping around for a private deal for their clients.
- This site also allows the lender to pre-screen their deals more easily because they can set their own criteria that they enter so they don’t have to waste time on deals which don’t meet these criteria.
- This site is also convenient for those private lenders who want to attract business when they have the available cash to lend.
- It is also advantageous for a broker because they can retain control of their files such as when they have to co-broker with another broker or a “B-desk.”
- Another advantage for brokers is that they won’t have to split their broker fees with another party unless it’s an in-house deal.
The Disadvantages of Strategic Matches
- Strategic Matches isn’t free and takes as commission a ¼ point from each broker that closes a deal. This will likely be passed back to their client through a broker fee which has been marked up.
- There are also some lenders which will take a submission that has been sent multiple lenders and require the submission be made on an individual basis and then must wait before sending to another lender. This could be a bit more time consuming for the broker.
- Another problem is that the broker may not perform sufficient due diligence on the lender before they recommend it to their client.
The focus right now for Strategic Matches is currently in B.C. which currently has 29 lenders on the system. Additionally, there are14 lenders from Alberta and another 7 lenders from Ontario who signed onto the site. The site intends to continue to promote more lenders from the latter 2 provinces in the next little while as the demand grows.
Also, the focus is strictly for residential financing but commercial lenders may be added later on. The site is a simple premise that promises to be very convenient for brokers, lenders and consumers.
