Nippon Oil, Nippon Mining to merge
Japan's top refiner Nippon Oil Corp and sixth-ranked Nippon Mining Holdings said they are considering a merger to create the world's eighth-largest oil major to better compete amid sliding prices and slower demand
Another Goldman unit hit by decline
Goldman Sachs' plans to expand its wealth management operations have been dealt a potential setback by a dramatic decline in the value of another of its funds
Chinese group sues Vale Inco
A large Chinese battery manufacturer is suing two units of Vale, one of the world's largest mining companies, in a patent infringement case that highlights the growing number of Chinese companies using local courts to protect their interests
Harvard endowment loses $8bn in four months
The world's wealthiest university placed the decline at 22%, bringing the figure to $28.7bn and underscoring how higher education has been hard hit by the global financial crisis
Adobe slashes revenue forecast
The US software group lowers its outlook for the November quarter to $912-$915m and announces job cuts, the latest indication of how the crisis has hit the technology sector
Carlyle to cut 10% of staff as downturn bites
Private equity firm Carlyle is cutting 10 per cent of its staff in the latest indication that buy-out firms will not be immune to the meltdown in the markets
Fortress suspends Drawbridge redemptions
The listed private equity group has suspended redemptions at its flagship fund in order to maintain assets after investors sought to withdraw more than $3.5bn in funds
Vodafone to appeal against India tax ruling
The Mumbai High Court dismissed a landmark challenge by Vodafone against a $2bn tax case in a blow to the UK group and a potential setback for other companies looking to make major investments in India
EDF tries to scupper Buffett's energy bid
The French state-controlled utility launched a direct challenge to billionaire Warren Buffett with a $4.5bn bid for 50 per cent of the nuclear fleet owned by its US partner Constellation Energy
Discounts drive 15% sales jump on 'Cyber Monday'
US online retailers saw an annualised 15 per cent jump in sales on the Monday following the Thanksgiving weekend, according to early estimates, as aggressive bargains boosted traffic on the day the industry has dubbed 'Cyber Monday'
US auto union makes concessions
The main car workers' union said that it would suspend a contentious practice that allows so-called 'idled' car workers to collect virtually full pay and benefits without working
New Star agrees £240m rescue with banks
One of the UK's best known fund managers has agreed to a debt-for-equity swap deal that will leave a group of four banks, including HBOS, Lloyds TSB, HSBC and RBS, in control of the group
Iberia gives BA merger ultimatum
The chief executive of the Spanish carrier said it would be 'too complex' for BA to pursue deals with both it and Qantas of Australia
Merckle at risk of losing empire
German billionaire who lost large sums by betting on falling share prices may have to hand over control of large parts of his industrial empire to his banks.
Dassault in pledge over Thales chief role
Aircraft group will not put forward own executive should Ranque leave in wake of stake sale


not, the higher the rate, the larger the fee.

There are a few special situations where the fee can be increased. Certain factors can change the fee such as
1) the term of the mortgage hypotheque
2) certain variable rate mortgage products
3) the length of time the mortgage is guaranteed for

Interest rate does NOT influence the commission a mortgage (courtier hypothecaire) will earn. So there is no incentive for the broker to find a higher rate for the borrower. This is in contrast to some bonus programs that banks offer their employees. (Read “Will my bank offer a better rate than a broker?” to learn more about this.)

There is a way brokers can increase the fees they earn and that is by doing volume business with one bank. If a mortgage consultantplaces all of his mortgages with one lending institution, after he reaches a certain amount, he will earn additional commissions, which can be substantial, frequently 20%-25% more than the standard fee.

Smaller brokers are induced to use this incentive, but it has no effect on larger brokers. Brokers such as Mortgage Intelligence, that processed over $8 billion in loans in 2005, or Multi-Pret/Mortgage Alliance with over $5 billion in originations easily reach the limit on all volume business, and so are not tempted to work with one bank.

What does this interesting information teach us about negotiating our mortgage through a broker? Number one, that brokers make their fees only through the size of the mortgage, so differences in interest rates are not going to affect them and number two, working with a large mortgage will increase the number of lending institutions that your loan will be exposed to, since large brokers have no incentive to work with one bank in order to obtain a volume bonus.

Gregory is an Accredited Mortgage (Hypotheque) Professional (AMP). To get more information on mortgages - prêt hypothecaires, please visit: www.infohypothecaire.com/hypotheque

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