IA to withdraw 2.99 rate today

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The debate about the 2.99 per cent rate is expected to shift Friday, with MortgageBrokerNews.ca learning the lender behind that rate will ditch it by 5 p.m.

“Last chance to take advantage of our week long buydown promotional rate of 2.99% (PF01) which ends tomorrow February 7 at 5 p.m. EST,” states an email obtained by MortgageBrokerNews.ca and sent to all of IA's broker partners.

MortgageBrokerNews.ca broke the story Monday of the lender's push into the market with that controversial rate and the online mortgage brokers hawking it. That report was subsequently picked up by a number of major news sources – including the National Post.

The national attention had spurred media speculation that Finance Finister Jim Flaherty -- who has taken great measures to reign in the housing market -- would be displeased with IA's offering and perhaps move to contact the lender as he did last year with another player in an attempt to encourage it to abandon the rate.

There's no indication Flaherty has done that here, say analysts.

Still, a great debate about the quality of the product and whether it could spark another rate war has ensued in the comments section of MortgageBrokerNews.ca, drawing much attention and criticism to the lender.

The email correspondance, sent Thursday afternoon, says brokers have until the end of the business day to take advantage of the promotional rate.

“If you submit an application with this rate, note that your application must be complete and accurate,” the email states. “If incomplete / incorrect, we will have to decline it and the rate will be lost.  A few minutes to review your application before submitting can save this rate!” 
  • Joe on 2014-02-07 11:16:55 AM

    IA is so messed up

  • Paul on 2014-02-07 11:20:15 AM

    In what way are they messed up? Because they had a week long rate special that is coming to an end? Just curious as to why you think so.

  • Ron Butler on 2014-02-07 12:57:03 PM

    Yeah, you are right Paul, seriously, in no way is IA messed up. This was a great offer that without question, created some buzz about mortgage brokers offering great rates to the consumer. IA still has several tremendous offers that are still in place.

    Really, it's sad, too many mortgage brokers have such negative knee jerk reactions about lender rate specials or promotions, trying to pick apart the products. Let's just offer great value to consumers, disclose factual product features and get consumers excited about dealing with mortgage brokers.

  • Scott Dawson on 2014-02-07 2:16:10 PM

    Yawn.... Slow news day?

  • Gary on 2014-02-07 6:13:30 PM

    Ron, You are not a Mortgage Broker! you are a Website Operator who provides not much service and value to your customers. The only way you can get these business is by buying down these rates

  • Victor Simone on 2014-02-07 7:19:17 PM

    Looks like the objection clinic, on how we deal with 5 year 2.99% is cancelled.

  • The Mortgage and Financial Planner to the Stars on 2014-02-09 10:13:13 PM

    Who cares!! Get a grip people. Every industry that has explosive growth will always have a line divided by those that are not capable to earn a great reputation and win business by providing great service, product and advice VS. those who have to buy the business (by paying finder fees for business, cash backs and incentives and reduced pricing). Be happy knowing the one's buying the business are not taking home a lot of money after expenses. Any one that says they are is living in a dream world.

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