Blogs & Comment

Financial planning and mortgages

Lior Hershkovitz is a mortgage agent who is studying to become a Certified Financial Planner. He believes the financial industry doesnt do a very good job integrating mortgages with the personal finances of their clients. By combining skills in both areas, he believes he can add value.
My approach to mortgages revolves around the fact that a mortgage plays a pivotal role in an individuals long-term financial plan. I don’t just provide a rate — I provide a complete plan that synergizes my clients’ current needs with long-term financial objectives, he writes on the homepage of his blog.
Some financial planners may claim they do mortgages. Well, not exactly, says Hershkovitz. What they do is refer the business to brokers or even mortgage companies, pocketing finders fees for referrals. For example, says Hershkovitz, [one particular mortgage company] pays financial planners about $1,000 for every person sent over that signs up for a … mortgage.
True, financial planning firms such as [one well known outfit] have their own in-house mortgage consultants. The problem is these people don’t shop the market. They have a very limited product line with lenders that the firm has arrangements with, claims Hershkovitz. As for the banks, they have done a [lousy] job on this, preferring to educate their staff to become general salespeople as opposed to true specialists with actual training.
I intend on merging the best of both worlds — offer full-fledged services of a financial planner plus retain my license as a mortgage agent or broker and shop from over 30 different lenders, adds Hershkovitz. He’ll also be regulated by the Financial Services Commission of Ontario, which he says has more stringent requirements than the Bank Act under which bank staff work.