Another rate site has brokers frustrated

Another rate site has brokers frustrated

Another rate site has brokers frustrated

Whispers of a new rate site being backed by a deep-pocketed company have made their way across the industry, leaving some brokers frustrated.

“I can tell a lot of brokers find rate sites frustrating; it’s another (force) getting in between you and the customers,” Paolo Di Petta of Di Petta Mortgage told MortgageBrokerNews.ca. “It’s adding an intermediary, which is sort of unnecessary (and) I think it’s going to be a problem for a lot of brokers who are more rate focused and brokers who are dealing with a lot of conventional lenders.”

A broker who wishes to remain anonymous brought the new service – Rates.ca -- to the attention of MortgageBrokerNews.ca and when reached for comment the company’s representative declined to offer comment.  “Currently we are not in a position to discuss specifics,” he told MortgageBrokerNews.ca.

Rates.ca’s offering is being touted in a Powerpoint presentation circulated to brokers and its features seem in line with its competitors.

Rate sites aren’t a new trend. Brokers have been dealing with this type of competition for some time and while are divided on whether they hurt business, one leading broker – who doesn’t use the services provided by rate sites – believes they do.

“I don’t have clients that use their services, I don’t use their services; what the competition does to drive their business is their prerogative,” Mauro Di Cosola of Dominion Lending Centres Mortgage Village said. “Does it hurt my business? I guess it does.”

However, he understands the consumer’s desire to use such services.

“It is frustrating, but that’s the beauty of a market; people, who buy things, want the best price (but) I know that when a client comes to me from a renewal source, they aren’t just coming to me for best interest rate they are coming to me for a holistic service,” Di Cosola said. “I provide not just a mortgage rate. No offense to a lot of these rate shoppers but they will hang up on you once they hear your rate.”

And he’s even found a silver lining in the new trend.

“If anything, these rate sites stop tire-kickers from phoning me and wasting time,” Di Cosola concluded.

31 Comments
  • Paul Mangion 2013-11-20 8:51:04 AM
    Once again we are doing a great job at racing to the bottom. I think most of North America does this pretty well. I will sit by and watch while the industry implodes. There is money to be made in other people’s misery.
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  • Mark 2013-11-20 8:56:52 AM
    I think that at this point new rate sites are actually a good thing. Lets face it, whether there is one rate site or 10, the effect on brokers is the same. They are all offering rates that have been bought down to the lowest point possible, yielding a very low profit margin. That is why you find that these rate sites are basically dealing with only a handful of brokers who are willing to work for pennies on the dollar. The more rate sites there are, the less business each one of those sites will be getting, lowering their profits even more. Again, this could be an issue for the newbies, but a well established broker has proven to provide their clients a service that they will not get from a rate shopping site.
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  • Alphonse Negro 2013-11-20 8:57:25 AM
    The mortgage brokerage business has in the past taken a short term approach and focused on the best rate... But in reality you are underselling the added value that you bring to your clients. You are mtg facilitators that get buyers into their first home. You are partners when it comes to helping your clients build wealth through mortgages.. Do not fear. We are in a business where relationships are more important than rates.. Forcus on the qualities and skills that you have acquired over the years and not whether you have the right worm. Bait is Bait! Wishing you all great success!
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