Should I compensate mortgage broker for his time after going elsewhere for mortgage?

Feb 28th, 2021 10:36 am

#1

RestaurantGuy10 [OP]: Newbie; Dec 2, 2011; 47 posts; 21 upvotes; ORLEANS

Feb 28th, 2021 10:36 am

Should I compensate mortgage broker for his time after going elsewhere for mortgage?

After my mortgage broker put in, perhaps, 1.5 to 2 hours of effort on my file, I ended up going directly to a bank for a better deal (that he didn't have access to). I understand that's the nature of his business but feel bad about his uncompensated time. My wife and I are debating whether or not to send him some cash by etransfer as compensation/appreciation. We are not sure if it is appropriate or how he'll react.

I'd appreciate your thoughts.

Share:

Feb 28th, 2021 10:50 am

#2

skeet50: Deal Addict; Jan 15, 2017; 3930 posts; 3393 upvotes

Feb 28th, 2021 10:50 am

No need. The best thing you can do is refer him to family and friends.

+2

Feb 28th, 2021 10:51 am

#3

atom2020: Deal Addict; Nov 2, 2020; 1284 posts; 1750 upvotes

Feb 28th, 2021 10:51 am

Professionals have to work on files all the time without getting every business transaction - this happens in various industries. I understand you feel bad but remember in all of your transactions financially you will always have your own best interest no one else will! You could always leave the agent a good review and if you wanted email him a gift card to say thank-you if you feel bad, but I just don't think you should feel that bad. At the end you are just doing what is best for you which is a wise decision.

+2

Feb 28th, 2021 11:03 am

#4

napoleonz: Sr. Member; Jul 1, 2005; 541 posts; 149 upvotes

Feb 28th, 2021 11:03 am

Kudos to you for being thoughtful of others even in business. A quick thank you and keep the broker's contact for future. But no need to compensate the broker. It's part of the cost of doing business, any business. Whoever ends-up doing the mortgage with your agent pays for their time PLUS a share of any time the agent wasted on other applicants not moving forward with them. The last thing a broker wants is having no leads

+1

Feb 28th, 2021 2:12 pm

#5

RobertSmalls008: Deal Addict; Nov 2, 2014; 1067 posts; 409 upvotes; Scarborough, ON

Feb 28th, 2021 2:12 pm

Built into the business plan - no need to compensate - but if you want to be super nice, refer friends and family in the future.

Feb 28th, 2021 2:21 pm

#6

jeeva86: Deal Fanatic; Jul 4, 2005; 6832 posts; 1075 upvotes; Ottawa

Feb 28th, 2021 2:21 pm

I was in the same situation and I referred him numerous other clients.

Heatware

+1

Feb 28th, 2021 2:26 pm

#7

Sanyo: Deal Guru; Feb 9, 2009; 11014 posts; 9502 upvotes

Feb 28th, 2021 2:26 pm

Referrals are nice. At worst a nice google review would help if the broker did try their best to help you.

It is still time and effort on their part and everyone has to put food on the table so at least your being nice and considerate OP unlike alot of people these days who only care about themselves.

+4

Feb 28th, 2021 2:47 pm

#8

hybridfx2: Jr. Member; Jan 19, 2009; 195 posts; 59 upvotes

Feb 28th, 2021 2:47 pm

No need for cash compensation, but as others have said, a referral or google review would be nice.

Feb 28th, 2021 3:55 pm

#9

arbytor: Member; Aug 22, 2016; 465 posts; 260 upvotes

Feb 28th, 2021 3:55 pm

You should gift yourself for beating the offer you got from the broker.

+3

Feb 28th, 2021 3:56 pm

#10

clydelee2020: Member; Dec 12, 2011; 201 posts; 217 upvotes; Toronto

Feb 28th, 2021 3:56 pm

Yeah refer him to all your family and friends. When they ask you if you used him, its gonna be weird when you say "naw, went with someone who could get me a better rate".

+1

Feb 28th, 2021 4:01 pm

#11

JayLove06: Deal Guru; Feb 29, 2008; 14217 posts; 10525 upvotes

Feb 28th, 2021 4:01 pm

Brokers know that banks are undercutting them as far as rates go. It comes with the business. As others have said referrals are better than any gift.

+1

Feb 28th, 2021 4:29 pm

#12

RestaurantGuy10 [OP]: Newbie; Dec 2, 2011; 47 posts; 21 upvotes; ORLEANS

Feb 28th, 2021 4:29 pm

arbytor wrote: ↑ You should gift yourself for beating the offer you got from the broker.

Best answer yet :-)

Seriously, though, I'm the OP and am appreciating the perspectives in here. There's definitely a consensus emerging to not compensate with cash.

Feb 28th, 2021 4:45 pm

#13

moofur: Deal Addict; Jan 9, 2010; 2213 posts; 1666 upvotes

Feb 28th, 2021 4:45 pm

It seems like over the past little while going to the banks/financial institutions directly are resulting in much better deals than going to brokers. Anyone else finding that to be the case?

+1

Feb 28th, 2021 5:10 pm

#14

ozzie16: Deal Addict; Oct 27, 2012; 2252 posts; 3559 upvotes; Toronto

Feb 28th, 2021 5:10 pm

I had to do this with a broker and 2 bank specialists who used a lot of their time. I just respectfully told them one-on-one the situation I was in, and have been sending them referrals (and wrote a glowing review of the mortgage broker on Google).

Mar 1st, 2021 3:02 pm

#15

Ziggy007: Deal Fanatic; Mar 15, 2005; 5466 posts; 1016 upvotes

Mar 1st, 2021 3:02 pm

RestaurantGuy10 wrote: ↑ After my mortgage broker put in, perhaps, 1.5 to 2 hours of effort on my file, I ended up going directly to a bank for a better deal (that he didn't have access to). I understand that's the nature of his business but feel bad about his uncompensated time. My wife and I are debating whether or not to send him some cash by etransfer as compensation/appreciation. We are not sure if it is appropriate or how he'll react.

I'd appreciate your thoughts.

He makes his money by finding you the cheapest rate.

If you found one cheaper on your own I don't see the need to give him money

Mar 1st, 2021 3:55 pm

#16

RestaurantGuy10 [OP]: Newbie; Dec 2, 2011; 47 posts; 21 upvotes; ORLEANS

Mar 1st, 2021 3:55 pm

Original Poster, here.

Thanks to all who responded. I took the majority advice...wrote a nice review on Google and a couple of other sites and sent him a note thanking him for his time, help and advice. He wrote back acknowledging that I made the right choice for me (going elsewhere) and said to reach out any time.

Mar 1st, 2021 4:20 pm

#17

RestaurantGuy10 [OP]: Newbie; Dec 2, 2011; 47 posts; 21 upvotes; ORLEANS

Mar 1st, 2021 4:20 pm

As an aside, if it weren't for RFD, I wouldn't have found the deal I did, saving me thousands..

RestaurantGuy10 wrote: ↑ Original Poster, here.

Thanks to all who responded. I took the majority advice...wrote a nice review on Google and a couple of other sites and sent him a note thanking him for his time, help and advice. He wrote back acknowledging that I made the right choice for me (going elsewhere) and said to reach out any time.