Take that, BMO! A broker is borrowing from the playbook of Canada’s most effective retailers, launched an offer meant to counter the now-infamous 2.99 rate.
“I'm trying to use this story that seems to get all the headlines and is free advertising for BMO to get other brokers across the country to join in and gain some media attention and turn it around,” Mark Norman, a broker with VERICO ACME Mortgage Professionals, told MortgageBrokerNews.ca. “We can strike while the iron is hot and make our challenge what people are talking about rather than the BMO.”
That “challenge" in many ways mirrors the price-match guarantees of some of the country's most successful retailers.
Norman, a St. John’s mortgage professional, is offering $299 to any clients who bring their BMO offers into his office, allowing him the opportunity to arrange another mortgage focused on bettering their saving.
In fact, “if I can't, I will pay them $299 in cash and they can go back to BMO with my money in their hand and get their mortgage there," he said. “We’re going straight to the client, and challenging the idea that the way to save money is only on rate.”
The offer comes on the heels of BMO’s move this week to re-introduce that 2.99 per cent on a five-year fixed, a limited-time offer meant to get homebuyers through the turnstiles, even as the market cools.
Brokers – and, indeed, other lenders – struggled to capitalize on any uptick in mortgage business prompted by a similar BMO offer in January.
In addition to reaching out to all of his book with the offer -- as well as advertising it on his site -- Norman wants other brokers to get in on the action.
Specifically, he's advocating a more proactive attempt to capture some of BMO’s spotlight, hoping brokers from coast to coast will duplicate his offer and so create the same kind of media buzz as the big bank.
“I figure if we can get the media or CAAMP to recognize the brokers’ reaction to this blatant (BMO move)," he said. "it could yield more awareness of brokers for consumers and show we're prepared to put our money where our mouths are.”