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Mortgage Broker News | 21 Dec 2010, 08:54 AM Agree 0
The mortgage rate auction website, Ratesheet.ca launched on Sunday December 12 to provide a competitive bidding system for potential mortgage clients.
  • Mortgage Broker | 22 Dec 2010, 02:27 AM Agree 0
    It's unfortunate that mortgage brokers continue to undercut each other only to make it easier for the banks to win the business by competing on price. I hope that mortgage brokers realize that competing strictly on price is not a viable business model. We should all learn from our realtor friends. Generally, and I emphasize generally, realtor fees are fixed around 5%. The successful ones don't compete by lowering their fees but on their value proposition. How many brokers sit with their clients to go through a presentation of how they work and find out what the client needs are? There will always be a percentage of society which strictly competes on prices, but as an industry we have provide more than price for our clients who are our best advocates to grow our business.

    Merry Christmas to all & all the best in 2011.
  • Shawn | 22 Dec 2010, 04:55 AM Agree 0
    Is purchasing mortgage leads such as this site illegal in your province????
  • Concrened. | 22 Dec 2010, 04:56 AM Agree 0
    Although he has the mortgage seekers in mind. He does not understand that for brokers to be considered as professionals, we cannot be jumping at any or all slash and burn attempts for someone to make money. The good mortgage brokers provide sound advise and should be compensated accordingly. When we attempt to reinvent the wheel, sometimes we get runover by it.

    Merry Christmas
  • JL | 22 Dec 2010, 05:02 AM Agree 0
    There is an inherent conflict of interest and breach of a brokers/agents professional responsibility here. Brokers/Agents are not providing the rates, the lenders are, and this is often dependent on many conditions that cause a rate change in the midst of the application. Its really a first come first serve to the lender on an impartial basis, ideally and in a perfect world. Using this site would imply that lenders favor certain brokers/agents, and lenders should be weary of being portrayed that way by the brokers and agents they work with.
  • Dave | 22 Dec 2010, 05:03 AM Agree 0
    A sad indication of where the Canadian mortgage industry is heading. Congratulations Vic, you've just hit a new low.
  • Regulator | 22 Dec 2010, 05:08 AM Agree 0
    This type of consumer origination is required to be licenced in provinces pursuant to their respective provincial legislation. Brokers should be cautioned participating in technology with unlicensed lead generation companies as this may result in the suspension of a users license.
  • Jeremy From Calgary | 22 Dec 2010, 05:13 AM Agree 0
    There will always be guys/sites like this taking advantage of the consumer. It's about product, strategy and lifestyle and finding the right product to facilitate the strategy to fulfill the lifestyle, not rate. Ask a doctor to provide a Rx without a proper diagnosis, it just doesn't work!

    This is what separates the professionals from the bottom feeders!

    All the best in 2011! Happy Holidays!
  • Laura | 22 Dec 2010, 05:13 AM Agree 0
    Cutting off your nose to spite your face is not a viable business plan. I looked at the Broker's that signed on to this and of course it's always the same ones. Not doing any real business and desperate to find new clients. Someone needs to say it once and for all.. good clients that actually complete mortgages with you don't sign on to this type of solicitation. You are only spinning your wheels again!

    Happy holidays.
  • Mortgage Broker | 22 Dec 2010, 05:13 AM Agree 0
    This is rediculous I see lots of Brokers offer lowest rates, and when the clients truly call them, they are advised by the Broker, the lender that offers the lowest puts the client through hell for docs. I know that for a fact, as I called a Broker posing as a client. The Broker's words were this: Well, us Brokers all have this rate offer, but would not want to put the client through the agonizing process with this lender. 2. So, we have clients that will land on some Broker's desk that bid the lowest rate, and as it turns out, the client's credit or job tenture does not fit for that AAA rate. So, the Broker gets the business anyway.
    Mortgages are not all about lowest rates. It's about the whole process and fitting them into the lender and priduct you put them through.
  • MB | 22 Dec 2010, 05:20 AM Agree 0
    If you're going to bid based on what a client puts down for their information then more power to you. First of all the rate shopper is not my client so thank you for keeping them out of my office. Second, a true mortgage broker offers so much more to a client than a low rate. I like the idea but wish you could operate under a different profession. This sort of tarnishes what we've worked so hard to build.
  • Spiker | 22 Dec 2010, 05:24 AM Agree 0
    I am not sure if the itool guys think they are doing Brokers a big favour by providing discounted rate lead opportunities, but they are not. Just another way to squeeze commissions.

    Ultimately if we all buy itool.pro websites maybe we not only get to pay for the site, and but also discount the rates to compete and pay more money.

    How about making websites that actually generate leads for the owner??

  • Jeremy From Calgary | 22 Dec 2010, 05:25 AM Agree 0
    It's this type of crap the erodes the integrity of an industry!
  • David Larock | 22 Dec 2010, 05:29 AM Agree 0
    Just another lead gen play that lures customers with the promise of low rates, and attracts desperate brokers who will cut their commissions because they can't generate business the old fashioned way. A perfect home for "No Frills" mortgage offerings.

    Pity the borrowers.

  • MP | 22 Dec 2010, 05:35 AM Agree 0
    Good Luck to you Vic. You're gonna need it. I won't be wasting my time at your website.
  • Mortgage Agent | 22 Dec 2010, 05:47 AM Agree 0
    I think this is a great tool to get access to leads without spending a lot of money. I have already signed up and have received a few mortgage applications i am working with. I am quite pleased with the quick turnaround.
  • K.C. | 22 Dec 2010, 06:14 AM Agree 0
    If you are really concerned, email your question to ELicence@fsco.gov.on.ca I tend to agree that the Mortgage Brokerages, Lenders and Administrators Act, 2006 require that you have to be licensed to solicit mortgage leads. Mind you that I'm sure the principals of ratesheet.ca have thought about that.
  • Tom | 22 Dec 2010, 06:21 AM Agree 0
    I signed on to check this out. Always curious about new ideas. I anticipate a few problems with this one though. The information given by the potential client is incomplete and likely a bit inaccurate. How can you give a legitimate quote ? Will the broker competing on this give a rock bottom rate then "adjust" that rate when they get more information from the client ? What will the client do when they are now quoted a higher rate ?
  • mortgage needs | 22 Dec 2010, 07:33 AM Agree 0
    (1) accuracy and/or sufficiency of information, and verification of client ID could be problems. If however, all necessary info. is collected, and lender bank insist on branch sign-up, and/or home inspection, and/or in-person title insurance sign-up; then the system has built-in safeguards;
    (2) promises of ever lower interest rates and/or buying higher on the basis of low interest rates is not what we want to see on a massive scale. Buyers must bear in mind that the goal is both to buy well[ - bid down the purchase price as much as possible to get best value for money, and in the process also borrow as little as possible... ] and to borrow well [ - borrow as low as possible for long-term viability and income-affordability; but obviously we don't want lenders to go out of business either, because that means those lenders call in their loans before maturity as has happened with a slew of small lenders in the recent sort out i.e. orphan loans ..]
    (3) yes, I did think that such a scheme would be marketed -what else isn't available on the internet ? If it is provincial and federal govt. approved, there is not much any one in this business can do. Afterall, we face stiff competition from branch banks - they overlook a lot of rules and one reason they can do it is because they have a good history of the customer's bank transactions, or they look at it as a full package i.e. client could have lots of cash on term deposit or relatives with large accounts which can be linked as guarantors... which must be your very basic underwriting method. So there is nothing wrong with independent brokers finding new ways of increasing market share, provided as safeguards mentioned in (1) are in place, or clients show up for signing.
    (4) We all know too that clients are not always loyal or appreciate our service.
  • AB Mortgage Broker | 22 Dec 2010, 08:18 AM Agree 0
    If your serious about the regulatory requirements, log onto www.ratesheet.ca, click "search broker" and sanction them one by one! Make sure you do a print screen first in the event the web guy catches on and tries to hide the name of the brokers.

  • J.P | 22 Dec 2010, 08:41 AM Agree 0
    What's stopping this Vik guy from selling the private information to some third party to make extra money. With no license, what's governing him? Or sell the information to some third world country where they can impersonate hard working legal Canadian citizens.

    This is retarded! And to those who get screwed, you had it coming. Can't fix stupid!
  • Frustrated broker | 22 Dec 2010, 09:54 AM Agree 0
    If Ratesupermarket wasn't bad enough, now this comes along?

    Why would you even publish this article or promote a company that is destroying our industry? Is this even legal? Shouldn't FICOM be stepping in here?

    Vik Palan is clearly working against mortgage brokers and the industry.
  • A.N | 22 Dec 2010, 11:23 AM Agree 0
    I concur with my peers. This is absolutely ridiculous. Why go ahead and undercut rates and take a hit on our commissions. What happened to providing service and advice to our Clients.
    Won't be signing up.
  • Reality | 22 Dec 2010, 11:33 AM Agree 0
    The worse part here is the www.IToolPro.com sells and builds websites for its clients who are Mortgage Brokers, Mortgage Agents and Mortgage Brokerages. Its on the premise that IToolPro wouldn't use their client's money against them...i.e. compete directly with them for their bread and butter. This is honestly a example of a Scam! Imagine you hire an employee teach them everything they need to know to do a good job, and pay them well at the same time. Now that employee uses every dollar you gave them to setup their own business that directly competes with yours and solicits your clients away from you. How would you feel? What kind of remedies would you have against your former employee? The answer is very clear, you would have damages for the potential profits lost. What should happen now is that all of IToolPro.com's clients should class-action sue Itoolpro.com for all of ratesheet's profits.

  • Gary | 23 Dec 2010, 02:32 AM Agree 0
    My goodness, I’m shocked by what I’m reading. I can only guess that the majority of you posting negative comments about this type of a service have your head in the sand and zero ability to see the changing dynamics of your industry.

    Canadian consumers are flocking online to shop for everything from cloths, to food, to cars… mortgages are an obvious next step. These types of services/sites dominate in the US, UK and Australia. Our market has been slow to react, but you can bet that Canadian consumers are not far off from seeing the benefits of getting the most competitive mortgage rates available with little hassle.

    True, it’s not all about rate; service and quality of advice are essential. Knowing your customer and truly understanding their needs is what will always set me apart from my competitors. But rate is the starting point that the customer understands. And no one can argue that a great rate for a full feature product won’t save customers money.

    Instead of slating the service and refusing to embrace change, why not consider how you could make this type of offering work for you. How do you plan to evolve your business model to keep up with the changes brought on by rate comparison websites and lead generators?
  • Mike | 23 Dec 2010, 03:11 AM Agree 0
    Brokers that continue to work based on solely on rate have a very limited future in the industry. Rate is part of the answer but not all.

    The sad thing is that Vik (the owner of the site and Itoolpro) is collecting private data from other broker websites he hosts, how do his client's (the mortgag broker community) know that their client will not receive an email “come check out this website..” . Having one business that is in direct competition to your client's business is not a smart move.

    I would suggest anyone who is hosted with Itoolpro to seriously consider their business relationship and what is being done with your data.

    As for this model, is very sad...You don't see insurance brokers doing this, or financial planners, accountants or lawyers.. Think of the future people. IF you subscribe to this type of broker vs broker rate shopping you are lowering yourself to a street mortgage prostitute with Vik as your pimp.
  • Brian Matthey | 23 Dec 2010, 10:21 AM Agree 0
    Know your client-represent yourself as a Professional and have the knowledge and experience to back it up.
    How many times have you quoted rate to have s bank match it!This will be no different-spend your time and energy to bid and lose the deal
    How many great clients have you created over the internet?
    How do you create a relationship with a client over rate.
    How do you "Know Your Client"with lead generators and rate bidding.

    The changing dynamics of this industry should be pointing to developing a more value added level of expertise that can provide a client with a financial solution that addresses their immediate and future needs and addresses not only their mortgage, but a financial plan.The changing dynamic of this industry is not about rate, rate competition models or lead generators. It is about raising the level of professionalism in our industry, which is slowly evolving in the public's eye.It is about being a Mortgage Professional,not an order taker.

    I have been in the business for over 20 years and I haven't built a book of business on rate.I have built a business on relationships.My lead generators are my clients and I am constantly looking for ways to improve and maintain that client connection.I am evolving in this new market by embracing the change in social dynamics and learning new concepts that will help me offer my clients more financial expertise to deal with their particular situation.

    Rate shoppers I send back to their bank.I don't need that business.There is no future in it.Maybe I am old school but I place a value on what I do and my clients appreciate it.It hasn't worked that bad for 20+ years.

    Do yourself a favour and concentrate on your clients and your referral sources.If you are doing what you should be doing,you won't have time worry about rate and lead generator sites.
  • Justin | 23 Dec 2010, 07:18 PM Agree 0
    I always use those tools. If it brings you a client or two why not use them? Yes you undercut your own commission but its either you get 0 or just lower comission. I made already a couple of bids there and will see what is going on.
    I also used ratesupermarket and ratebot.
    Ratebot.ca for example brought me over 20 clients and its free. Just gotta keep rates update. And majority of them actually closed and free.
    Ratesupermarket is too expensive for me so i stopped using it.
    Why not utilize whats available to you to generate more business. It is only a plus especially when it is free.
    Majority of your clients shop online anyways, so why not make yourself easier to find online. You can't change the way trend is going. Everything is going to be done online soon. Why not be ahead of competition.
  • Scott Dawson | 29 Dec 2010, 07:06 AM Agree 0
    The leads coming from RateSheet.ca are so unqualified that you may as well flush your $5 down the toilet. You'd be better off spending the money and taking a referral source out for coffee. I signed up on the site to see how the process works for both broker and client. I wonder how many so called "applications" on the site are actually legitimate ones?
  • Mary | 27 May 2011, 06:18 AM Agree 0
    How is everyone's experience using this so far? I'm thinking about signing up as I'm a new broker and need leads. How much do you pay? 5 bucks per lead? How much do you pay in other sites like the Rate Supermarket guys?
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