“We’ve helped build the beast and now the beast has turned on us,” Jivan Sanghera of Dominion Lending Centres
Home Capital Solutions told MortgageBrokerNews.ca. “This caught me completely off guard and I feel blindsided; they stand to alienate a lot of brokers by doing this.”
James Laird, who recently left his management post with True North Mortgage, will manage the as-yet unnamed brokerage which is set to launch later this year. Its rates will appear alongside the other 40+ brokers on the pages of RateHub.ca and will pay the same fees.
“We know that it’s essential if we want to retain our customers who have been amazing that we have to be 100 per cent transparent and fair, so RateHub needs to continue to operate in the way that it does today,” Alyssa Richard, CEO of RateHub told MortgageBrokerNews.ca. “It has to list rates from lowest to highest; the customer chooses which broker to work with and there will be absolutely zero skimming of leads.
“We understand that rate sites work today but the margins aren’t incredibly fat for brokers and so it’s very important for all of our brokers to get those large leads to make sure that the economics of purchasing leads from us still makes sense.”
The announcement has been met with optimism by Paul Poirier, a mortgage broker with Dominion Lending Centres
Eagle Group, who sources approximately 30 per cent of his business through RateHub.
RateHub.ca will join forces with an influential channel player to launch a new brokerage, with several brokers arguing the move is a betrayal.