Broker diversification by providing consumer credit

Broker diversification by providing consumer credit

Broker diversification by providing consumer credit

"You can take the high road and say that people have too many credit cards and consumer debt is too much or you can take the 'if you can not beat them join them' approach," said James Robinson of the Center Mortgage MortgageBrokerNews.ca . "We're not here to be the moral police; if people are going to have a credit card and using it certainly would not hurt for us to give the same advice to our customers as we do on a mortgage in terms of choosing what is best.
It may seem ironic to some, but many brokers believe offer consumer credit card products is one of the most effective alternative revenue streams players can add to their business.
Brokers often criticized the government's focus on curbing mortgage debt as opposed to credit debt. This past December, the Bank of Canada stated that consumer debt is one of the biggest burden on the economy of Canada and announced that Canada currently carry a total of $ 1.5 trillion of debt.
"We find ourselves constantly counseling clients on how to manage their credit so I think it is a natural extension."
However, 22 percent of respondents in a recent survey said they MortgageBrokerNews.ca has diversified by offering credit consumer loans, and 43 percent say they are the best suited for mortgage brokers looking to diversify.

Other options include syndicated mortgages, insurance, and financial advice.

Others have diversified away from for fear of becoming "a jack of all trades and master of none".
Robinson, himself, has not diversified its business to include alternate revenue stream, although he has admitted to examine possible areas to expand into.
"My problem with diversification is that you are not a specialist anymore," said Mike Maguire Mortgage Wise Financial MortgageBrokerNews.ca. "Diversification into other areas do not make sense; I used to sell mutual funds and mortgage but it's hard to keep up-to-date on more than one industry."
"Consumer credit products related to mortgage - debt is a debt and I thought it was just an easy sell," said Maguire.
Maguire, however, see the benefits that it offers consumer credit products.