Investors and homeowners got a new choice in the market this week. 

Well… sorta.

TD announced this week that they’ll be offering their “HELOC” product through the broker channel. 

I know, I know, exciting right? (insert eye roll here)

But this is actually a big step for consumer choice. Not only is it another product available through mortgage brokers, but it signals a shift in the way the banks are looking at mortgage brokers. 

For years it felt like borrowers had to walk, hat in hand, into the bank and ask  on bended knee, to be deem worthy of a mortgage loan. 

But those days are far behind us. 

Of the nearly $400 billion of mortgage loans originated in Canada yearly, mortgage brokers account for nearly half of that. 

So why does this matter?

Simple, more choice for consumers. 

But more choice isn’t always a good thing. 

There were studies done a few years ago that too much choice causes people to freeze in “analysis paralysis”. In other words, confused people do nothing. Instead of trying to figure out the multitude of choices themselves, consumers are increasingly choosing to go through brokers who understand which products fit their lives the best. 

Imagine trying to figure out every product, from every lender, before you even apply for a mortgage, or do a credit check. I’d be willing to bet some people would never buy a home. 

But you, the people have spoken. Much like seeing your family doctor before visiting a specialist, mortgage brokers understand your situation and send you to the right place to get your challenge solved.

...and the banks are starting to listen. 

Today on the “Investment Property Income” podcast, we’re talking about TD’s new product roll out, and the shift that’s taking place in the market. As always, we started out talking about one thing, and Geoff took us way off in interesting and unexpected territories with his questions. 

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