5 year Fully Closed Career

When I was a mortgage broker, my days were filled with protecting clients from future restrictions and penalties which may adversely impact them going forward. As mortgage brokers we feel like guardians of the future for our clients and ensure their mortgages not only have the lowest cost coming “in” but also going “out”. Now, I knew this as someone who’s seen countless mortgage files and applications but clients very rarely understood the consequences until it was explained to them that locking into a restrictive product could cost them much more in the long term than they are saving in the short term. In many cases they still didn’t take the guidance.

Mortgage brokers understand this risk, they explain this risk to their clients all the time yet sometimes forget to apply the same logic to themselves. What do I mean?

Homebuyers will sometimes be offered upfront savings in the form of a lower interest rate or cash in hand in exchange for a locked in term, or large exit penalty. As professionals we know how scary this can be as a lot can happen over 5 years and having the flexibility to make appropriate adjustments could save them thousands, if not tens of thousands of dollars. I’m not talking about a lower rate on a flexible product, I’m talking about restrictive products which limit your clients long-term success. The goal of any true professional is to not see just the solution today but also the ones we’ll need tomorrow.

How does this relate to you as a mortgage broker?

Mortgage brokers often fall victim to the same when they are offered upfront savings, in the form of cash or a signing bonus to join a firm in exchange for a long term, locked in contract on their careers. What if your business changes? What if your needs change? What if your life changes? What if you aren't receiving what you expected? What if…..? Well, like the client above, you stay locked in or face very large penalties to exit.

This is not to say that 100% of the time it’s bad. There are certainly people that benefit from these types of solutions, but not everyone. And the truth of the matter is that there is also a little (or a lot) of luck involved that affects the overall results. You’ll never know when or why you’ll need a change but all things created equally, wouldn’t it be better to not be locked in and risk your future potential while putting yourself in a position that may hinder your growth? To me the answer is clear but it’s important to find the answer that is right for you. I’m not just proud of the fact that I’ve been fortunate enough to assist hundreds of brokers build long meaningful careers but also that I’ve been able to help those that required an exit smoothly and seamlessly without large costs or restrictions.

My main suggestion is that you consider the following:?

Are the upfront benefits worth:

• My long term success?
• Will my needs change going forward? Things like additional support, technology advancement and long term stable leadership.?
• If I didn’t like the situation would I be happy staying
• Would I be happy with the costs associated with leaving
• Flexibility
• Can I make a change at my own discretion or is it based on a predetermined timeline?
• Will I have the resources and support to move should I need to?
• Happiness
• Will I feel resentment if I can’t progress
• Will this feeling impact my relationships
• How does this affect those around me

Lots to think about but hopefully this can help us all start the process of thinking.