Mortgage brokers removed from website for ‘too low’ rates

Mortgage brokers removed from website for ‘too low’ rates

Mortgage brokers removed from website for ‘too low’ rates Two mortgage brokers have expressed their surprise at being removed from RateHub because their mortgage rates are too low. Jeff Mark and Steve Pipkey of Spin Mortgage, an online brokerage based in Vancouver, posted a rate of just 2.44 per cent for a 5-year fixed deal. The Globe and Mail reports that RateHub believed that the conditions to qualify were beyond the reach of most consumers and concluded that the rate amounted to false advertising. The rate was the result of a deal from Industrial Alliance Insurance and reduced by Spin foregoing some of its commission. Mr Pipkey says that the rate is achievable but RateHub’s Alyssa Richard argues that only 10 per cent of borrowers would qualify for extra conditions including the mortgage being closed within 30 days. Read the full story.
 
10 Comments
  • Dan Faubert 2015-03-27 8:48:17 AM
    Finally some sanity in the market!
    Post a reply
  • Barb 2015-03-27 9:00:47 AM
    I agree that advertising these bought down rates sets a dangerous precedent for the industry, however fact is that clients would have the same qualifications for the 2.44% rate as they would IA's 2.69% rate.
    Post a reply
  • Arbitrage 2015-03-27 9:26:13 AM
    Rate hub should be embarrassed by this. Clearly a tactic to keep Canwise (their own brokerage) at the top of the heap. The problem isn't with Spin mortgage offering these rates, instead it is with Rate Hub not offering brokers the ability to list various conditions. Someone posting their rates here can only post rate, term, pre-payment % and rate hold period. Rate Hub designed it this way for maximum clicks...they have known all along that many people clicking their links would not qualify. They have promoted bait and switch for years...it's literally ingrained into the site design.

    Rate Hub is simply banning someone who does bait and switch better than they do and claiming it's in the clients best interest. If they cared at all about the client they would require their rate listings to be more detailed. Penalty calcs, registration type, portability, HR or CV, beacon requirements, transaction type, etc. At least give the client a chance to click on something that halfway applies to their situation...
    Post a reply