Ethical Standards

September 29, 2012 | Posted by: Mike Garganis

As a mortgage broker, being a 100% commission, pretty much means I'm self-employed.  Through existing contacts, meeting new people and developing new relationships, I get a bulk of my clientele through this channel, as well as advertising.  I love what I do.  I get to help families achieve home ownership.  I sit down with them, listen to their needs and provide them with multiple options best suited for their current and future needs.


About 4 years ago, we had a global financial crisis.  Some saw it coming, but no one was able to avoid it.  A lot of people lost a lot of money, including their homes. 


No one has a crystal ball and no one should ever say the market will be stable or unstable.  If you were to ask me what I think is going to happen in the next few years, I’ll simply say this, the Leafs might win the Stanley Cup, but I doubt it.  I’d be happy if they make the playoffs this season… if there is a season.


Honestly, I’ll simply say, live within your means. 

  • You could win this week’s lottery. 
  • You might be promoted at work, which means a pay increase. 
  • You might be pulled into the boss’ office and told your position has been eliminated. 
  • Are you the sole income earner? 
  • Does your spouse work? 

For some, all of these apply, for others, some apply, and then there are those where none apply.  There are a ton of factors that come into play.  That’s why everyone’s situation is different.


Here’s the point to of all this.

My neighbor, who currently rents, was just informed by his landlord that she is listing the house to sell.  Great guy and hard working.  He recently got married was possibly in the market to purchase, but with everything on his plate, his job keeps him busy, he’s happy just renting for now.

Shortly after getting married, his landlord says to him she plans on selling because her realtor told her house prices are going down in the new year.  Oh really?  Wow.. can you give me the winning lottery numbers too Ms. Realtor?  She’s collecting enough to cover the mortgage and then some.


The landlord gives him the option to buy.  So the realtor’s mortgage broker meets with him and tells him he doesn’t qualify.  So naturally, he ran his numbers by me.  Without going into too much detail, he qualifies to buy the house he currently rents.


Here’s a little snippet from the TREB’s (Toronto Real Estate Board) Jason Mercer, Senior Manager of Market Analysis.   “The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote price growth moving forward.”

Price Growth Moving Forward…Senior Manager of Market Analysis.  I’m not going to hold Jason to his word, but all indications from the past 2 years have shown a huge turn around since the crisis.  The Bank Economists have also said they expect home prices to either remain or go up slightly. 


As much as I would like to call out this realtor who is doing this to get a sale, and had her mortgage broker ‘deny’ them financing, I don’t have the time or effort to conduct an investigation.


My advice is simply this.  If you don’t have a professional that provides you with ETHICAL and unbiased advice and guidance, talk to your friends, family or neighbors.  Ask them who they would recommend and their experiences with these people.


Sales people in general have a bad reputation, but the good ones provide advice and guidance whether they get the sale or not.  They want to exhibit their knowledge and expertise in their respected field.  

In closing, I’m helping my neighbor by letting them know they qualify for a mortgage, and putting them in contact with a realtor I know will help them rent or buy.

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