A broker-only 2.98

by |

The road reps won't like it. Heck, many brokers may not like it, either! But Mortgage Alliance has now handed its members a 20/20 five-year mortgage at 2.98 per cent; specifically tied to its very successful RightMortgage.

“This announcement is part of our long-term strategy, as was our recent GIC referral program, to provide our brokers with the competitive edge and resources,"  said MAC President Michael Beckette. "They can continue to build their business in every economy.”

The broker network officially launched the new RightMortgage rate on its five-year fixed Tuesday. Members of the network are already gearing up to sell it, even as the industry grapples with a slowing real estate market.

National sales in September were 15 per cent off of a year ago, according to CREA.

The slowdown compelled BMO to quietly reintroduce its own rock-bottom pricing, but on its "no-friller five-year mortgage and just for a few days .

Neither offer is likely to set off another round of the rate wars, said one analyst, pointing to continuing broker access to similar rates. Still MAC is hoping the 2.98 per cent rate will galvanize consumer interest.

It -- coupled with flatlining prices in many housing markets -- may also give MAC agents and brokers the opportunity to coax fencesitting clients into the market. Brokers across the country continue to see preapprovals mount as homebuyers wait on more significant price corrections.

The RightMortgage, now five years on the market, has attracted more than $5 billion in sales to date and enables borrowers to customize mortgages by tabbing features onto a bare-bones structure.

  • VirtualMortgageBroker on 2012-10-17 4:23:16 AM

    hmm. Mortgage Intelligence has being offering 2.94% 5 year fixed 20/20 as well for weeks, so I don't see this being any news?

  • James in Whitby on 2012-10-17 5:31:44 AM

    looks like everybody is still selling rate as their #1 reason to use a broker ... when will they ever learn?

  • Jeremy on 2012-10-17 5:33:03 AM

    In the absence of value, sell rate. What message does this send to your associates? Whatever happened to a brokerage helping the associate to add value and compete in a different space rather than having to resort to playing the rate game. #sad

  • MP on 2012-10-17 5:34:54 AM

    Thank you Virtual Mortgage Broker. Why isn't the Invis/MI offering a "big" story? Hmmmm.. Very interesting!

  • Previous MI broker on 2012-10-17 8:50:28 AM

    This is because INVIS/MI are on their way out. They blew it iin this industry by allowing the Verico and DLC's to enter. Boo hoo for them.

  • localmortgagehero.com on 2012-10-17 11:12:02 AM

    Some clients are not in need to advice and the warm fuzzy feeling provided by a broker. They simply want the lowest rate and will stop at nothing to get it. That's why it is important to allays have competitive rates or you will lose clients.

  • Bill Jones on 2012-10-17 11:12:23 AM

    Why don't people go by their REAL NAMES on these posts? Lobbing uninformed, anonymous, cheap-shot grenades at companies is unprofessional and cowardly. State your name and stand accountable. Until you do "Previous MI Broker" your opinion doesn't register with me (not that you would care).

  • Glenn D on 2012-10-19 7:40:55 AM

    how does this MAC 2.98% work? are they funding their own deals or a deal with a specific lender?

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions