“When someone calls and the only question they want me to answer is, ‘What’s your best rate?’, they’re probably not the best client fit for us.”
Jerome Trail, owner and broker of record at The Mortgage Trail, isn’t your typical mortgage broker. And he doesn’t run his business in a typical way, either.
Trail’s main focus remains his commitment to keeping his clients from getting locked into a mortgage they don’t understand. Not enough people – particularly first-time homebuyers – realize that every mortgage brings with it a set of penalties when it comes time to break it.
“There are only two ways a Canadian avoids paying a mortgage penalty. They either pay the mortgage to zero or they sell the property and the purchase closing date exactly matches the mortgage maturity date – that’s it.”
Across hundreds and hundreds of filings, Trail has never seen either of those things happen.
And yet, many people are hesitant to rely on a mortgage broker to help navigate one of the most important (and expensive) decisions of their lives. They see a rate promoted on the internet somewhere and think that’s what they deserve, regardless of whether or not that rate applies to their situation.
“We execute somewhere between 5-10 mortgages per week. For the typical purchase, we are in touch with clients for months as we work to find the absolute best mortgage solution for them. To suggest that a better one can be found after a two-second Google search is something I just have to take with a grain of salt.”
Unfortunately, believing in a posted rate more than a registered broker is something that will often end up costing homebuyers far more than a grain of salt.
Trail has already thoroughly outlined the likelihood of homeowners having to pay a mortgage penalty at some point for Toronto Storeys, but in case you missed it, this is a must read. The short takeaway is simple – you’re going to have to pay a penalty. And when it comes to mortgages, the devil is absolutely in the details, so having an expert on your side is a must.
“What too many people don’t understand is that we’re independent, we’re legally obliged to find the best solution we can. We have 30 types of lenders who want to work with us, chartered banks, insurance companies, lenders – because they want our sales volumes. But we work for the borrower.”
Trail’s commitment to homebuyers (the borrowers) is perhaps most evident when it comes to working with real estate agents; these individuals, it’s important to note, are not mortgage brokers.
“So many of our clients are working with realtors with different levels of experience, so the onus is on us to be prudent on the client’s behalf.”
Trail takes this responsibility very seriously.
“Your mortgage broker should be able to justify, transparently, why they landed on the solution they have for you. If they can’t, that’s a pretty big problem.”
And when you’re buying a home, having one less (big) problem seems like the only way to go.
To speak with Jerome and his team of professionals at The Mortgage Trail call 416 855 3186 or visit themortgagetrail.com