Thanks to big bank PR a new phenomenon is pushing home buyers seeking mortgage insurance to advisors.
The housing boom is becoming a real boon to advisors.
“With the housing boom, I’m writing a lot more term policies for mortgage insurance,” said Chris Dewdney, an advisor with DWL Financial Services Inc. “That’s a neat little trend that we’re seeing. And the policies are actually getting larger.”
With good reason, average home prices in Canada are at $566,696. In January, the average sale price of a detached house in Toronto cruised past the $1 million mark.
“For a while now they’re saying we should have had a correction; I haven’t seen one,” said Dewdney. “People are just buying, buying and I think they’re recognizing the need for coverage more and more.”
Traditionally homeowners would get mortgage insurance through the bank, but consumers are starting to see how mediocre the product is.
“I think there’s been a lot of negative media with the bank product so a lot of people are turning towards individual advisors for policies directly from insurance companies,” said Dewdney. “The bank product is inferior. You’re paying for a declining benefit.”
Dewdney said the media spotlight is allowing the public to become aware of the shady tactics banks use on consumers.
“A lot of time you see tied selling, which is unethical, and they try to pressure you into taking the mortgage life with that mortgage,” he said. “A lot of people don’t know their options. A lot of people don’t really know the details and it’s a bad practice.”
“With the housing boom, I’m writing a lot more term policies for mortgage insurance,” said Chris Dewdney, an advisor with DWL Financial Services Inc. “That’s a neat little trend that we’re seeing. And the policies are actually getting larger.”
With good reason, average home prices in Canada are at $566,696. In January, the average sale price of a detached house in Toronto cruised past the $1 million mark.
“For a while now they’re saying we should have had a correction; I haven’t seen one,” said Dewdney. “People are just buying, buying and I think they’re recognizing the need for coverage more and more.”
Traditionally homeowners would get mortgage insurance through the bank, but consumers are starting to see how mediocre the product is.
“I think there’s been a lot of negative media with the bank product so a lot of people are turning towards individual advisors for policies directly from insurance companies,” said Dewdney. “The bank product is inferior. You’re paying for a declining benefit.”
Dewdney said the media spotlight is allowing the public to become aware of the shady tactics banks use on consumers.
“A lot of time you see tied selling, which is unethical, and they try to pressure you into taking the mortgage life with that mortgage,” he said. “A lot of people don’t know their options. A lot of people don’t really know the details and it’s a bad practice.”
