Real Estate

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

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  • Mar 1st, 2021 4:20 pm
[OP]
Newbie
Dec 2, 2011
47 posts
21 upvotes
ORLEANS

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.
16 replies
Deal Addict
Jan 15, 2017
3930 posts
3393 upvotes
No need. The best thing you can do is refer him to family and friends.
Deal Addict
User avatar
Nov 2, 2020
1284 posts
1750 upvotes
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.
Sr. Member
User avatar
Jul 1, 2005
541 posts
149 upvotes
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
Deal Addict
Nov 2, 2014
1067 posts
409 upvotes
Scarborough, ON
Built into the business plan - no need to compensate - but if you want to be super nice, refer friends and family in the future.
Deal Fanatic
User avatar
Jul 4, 2005
6832 posts
1075 upvotes
Ottawa
I was in the same situation and I referred him numerous other clients.
Deal Guru
Feb 9, 2009
11014 posts
9502 upvotes
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.
Jr. Member
Jan 19, 2009
195 posts
59 upvotes
No need for cash compensation, but as others have said, a referral or google review would be nice.
Member
Aug 22, 2016
465 posts
260 upvotes
You should gift yourself for beating the offer you got from the broker.
Member
Dec 12, 2011
201 posts
217 upvotes
Toronto
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".
Deal Guru
Feb 29, 2008
14217 posts
10525 upvotes
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.
[OP]
Newbie
Dec 2, 2011
47 posts
21 upvotes
ORLEANS
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.
Deal Addict
Jan 9, 2010
2213 posts
1666 upvotes
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?
Deal Addict
Oct 27, 2012
2252 posts
3559 upvotes
Toronto
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).
Deal Fanatic
Mar 15, 2005
5466 posts
1016 upvotes
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
[OP]
Newbie
Dec 2, 2011
47 posts
21 upvotes
ORLEANS
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.
[OP]
Newbie
Dec 2, 2011
47 posts
21 upvotes
ORLEANS
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.

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