How much is the banker making by saying YES to your mortgage application?

[Nir]

Hi All,

How much approximately does an account manager working for the Residential Mortgages department at any of the large banks make? Is it usually a % of the mortgage approved (i.e. 1%=$1,000 for 100K mortgage), a fixed amount (i.e. $2,000 per mortgage regardless of the amount) or do they just earn base salary?

Just interested in understand their motivation/compensation better. THANKS.

 

[RobMacdonald]

Hi,

I think you`re referring to a Mortgage Specialist working for a chartered bank, as opposed to a Personal Banker working at the branch level. The personal banker is easy, they make a salary...... plus some other amounts based on employee incentive programs, but dfinitely not commision.

As far as the mortgage specialist, it depends on the institution and the current pay structure they are on. There are many different structures right from straight commission to salary/commision to salary/bonus. The pay structures will also significantly vary based on the % discount they are able to offer. Many companies have a `floor` rate that the specialists are allowed to offer, and then either get an addition or sbutraction from the pay on the file depending on what rate they were able to negotiate with the client.

Additionally, most mortgage specialists will also recieve bonuses based on the sale of other products like life insurance, readvancable mortgages, or special terms and mortgage products. The pay will aslo vary depending on if the client was a branch referral or obtained on their own.

On the whole, they will generally make between .25% to .60% of the mortgage amount, plus or minus and additional incentives. So it`s not an exact answer but gives you a ballpark.