“I’ve never seen one and I’d never think of using one,” Nick Bachusky, a broker with Verico
The Mortgage Advisors, told MortgageBrokerNews.ca. “That broker even used legal threats against the client.
“Hopefully getting this story out there will prevent other brokers from treating their clients that way. Stuff like that gives our industry a bad name.”
A client turned to Bachusky to get a mortgage following a poor experience with another industry professional who insisted on using an exclusivity agreement.
“Nick (Bachusky) was great; it was smooth and I didn’t have to worry about anything,” the client, Stephan Gauthier, told MortgageBrokerNews.ca. “He even showed up at my house to sign documents.”
Gauthier shared the negative experience, explaining he was asked to sign an exclusivity agreement that stipulated he could not work with another broker for 120 days.
“There were inaccuracies throughout the documents, including having a line of credit on there twice; (instead of rectifying it), the broker told me to use my rental income to offset that,” Gauthier said. “I had to catch that myself and explain it to the broker.”
Gauthier said he also inquired about what sort of porting and bridge financing options were available.
“His answer was that if I’m not planning to move in five years not to worry about it.”
Gauthier says he insisted he wanted to work with a different lender, First National, and after much back and forth the broker presented him with another set of mortgage documents.
After he had had enough, Gauthier contacted the brokerage to sever the business relationship, and the broker of record allowed him to, noting that Gauthier’s original broker had left the brokerage.
Still, the broker sought $3,000 in compensation for work already rendered, according to Gauthier.
Even after the experience, Gauthier decided to work with another broker to finalize his mortgage. He said that despite the negative experience, he doesn’t paint the entire mortgage industry with the same brush.
Of course, Gauthier’s original experience is certainly not the norm.
Despite a recent negative experience with a broker and an exclusivity agreement, this client still chooses to support the broker industry.