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.