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True North answers critics

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Mortgage Broker News | 12 Jul 2012, 07:00 AM Agree 0
True North’s 2.99 per cent offer was in no way a “loss leader,” says the company’s owner, suggesting it’s leading sales in markets where offered.
  • Jason | 13 Jul 2012, 04:00 AM Agree 0
    All the power to Dan, business is business and if he chooses to do so then so be it. Free market system. Some clients ONLY care about rate and if that is the case he is servicing their needs.
  • JJ | 13 Jul 2012, 04:02 AM Agree 0
    We have been offering 2.99% for a while now, starting back in December. Without buy-downs.
  • DD | 13 Jul 2012, 06:29 AM Agree 0
    yeah right JJ...you may have had 2.99 but on a 2, 3, or 4 year, not a 5 year paying 80. If you do, why dont you tell us who its with.
  • Lew | 13 Jul 2012, 08:32 AM Agree 0
    I believe in free enterprise and Dan's right to market however he sees fit.

    I also believe that cutting commission to get more business is a slippery slope and once you start (if the client is aware) you will be forced to repeat time after time.
    Never say never, but at this point, not a path I will follow.

    Walmart was referred to in the article as well. If you look at Walmart's business model they take as much of their manufacturing as possible offshore to drive down their costs and then beat upon their local vendors for better volume pricing to keep their profit margins.

    Instead of pointing the finger at each other, we should be strengthening our co-ops (Verico-DLC-Invis etc) and arming them with better unity & negotiating power with lenders.

    Based on past pricing, there is plenty of room in the bond rate spread to push the rate under 3%.

    But do you really want clients that are rate driven?
  • David Larock | 13 Jul 2012, 09:12 AM Agree 0
    I have no problem with brokers who base their business model solely on having the lowest rate – to each his own. I just don't think we should laud their “success” or hold them up as examples to be followed. Who cares if you did $100 million in volume if you dropped your pants to do it?

    The brokers I admire offer their clients excellent rates but also great service to match and interestingly, you never hear them brag about their “volume”.
  • Derek Rowley | 13 Jul 2012, 12:15 PM Agree 0
    Kudo to Lew and Dave Larock
  • Not A Broker | 14 Jul 2012, 07:41 AM Agree 0
    Honest question - If you're offering me the same mortgage with the same lender without the buy-down, why should I go with you over True North? I've never gone to them for a mortgage, so I am not familiar with their service/knowledge etc.
  • Bill Jones | 24 Nov 2012, 05:37 AM Agree 0
    Mimicking Walmart's "philosophy" is not necessarily a good thing: http://en.avaaz.org/1137/happy-black-friday-walmart?utm_source=facebook&utm_medium=social_media&utm_content=_bottom&utm_campaign=labour-rights
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