Poll results: Majority of brokers will avoid RateHub

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Mortgage brokers across Canada have spoken and the results are in: The vast majority of industry professionals say they will avoid using RateHub.ca’s online services after finding out about the company’s plans to establish a brokerage that will directly compete for leads.

74 per cent of participants in a recent MortgageBrokerNews.ca said they would not use RateHub’s services going forward because they view the move to establish a competing brokerage as a conflict of interest. These sentiments have been streaming in since news broke about the fledgling RateHub mortgage brokerage.

“Anyone who would still support RateHub is short-sighted,” Jake Abramowicz of Mortgage Edge wrote on MortgageBrokerNews.ca. “The massive database, social media follow and potential conflict-of-interest they pose is huge, and you're doing yourself and the industry a disservice by competing within the game. Get off the train and focus on building a better business.”

However, not everyone shares the same view.

“We currently use RateHub, and will continue to do so,” Michael Mullis of Mortgage Teacher wrote on MortgageBrokerNews.ca. “Yes, this brokerage announcement will have us monitor it even closer, and perhaps we are not the biggest fans or rate sites but they can work.”

Regardless, as many have pointed out rate sites will continue to be a permanent fixture in the Canadian mortgage lending world. But will brokers flock to one of RateHub’s competitors?

“Rate sites in their current and future form will be here to stay,” Vince Gaetano of MonsterMortgage.ca wrote on MortgageBrokerNews.ca. “The consumer wins and mortgage brokers will need to work harder and smarter.”
  • Vince Gaetano on 2014-07-21 12:24:32 PM

    Did Mortgage Broker News validate that all participant in the poll actually were Rate Hub clients? If not, the results and story have no value.

  • Not using RateHub on 2014-07-21 12:31:21 PM

    I notice True North is no longer listed on the RateHub site.

  • John Bargis on 2014-07-21 12:47:55 PM

    Regardless of the results of a poll, the reality is that Rate Hub will now aggressively compete with those who choose to utilize the services and tools of the site. Clearly the numbers were not making enough sense for them, that they felt they had to enter the broker arena directly.

    I'm not so sure that increasing the monitoring of a competitor site's activity is as easy as Michael Mullis may think, as suggested in the article above. There is no dispute that when a client is referred to a site for any of its services, there is a real threat of the loss of revenue for the participating broker who pays for the usage of the site....Not rocket science, just common sense.

  • Paul Therien - CENTUM on 2014-07-21 6:11:59 PM

    There is a lot of conjecture happening with regards to RateHub and their opening of a mortgage brokerage. In my personal opinion I believe that it is far too early to jump to conclusions about what the end results will be. There is one key items that seem to be ignored in all of the commentary. RateHub will only be joining the likes of other rate sites that have their own brokerage arm. If those other sites have the ability to maintain their business, there is no reason why rate hub should not be able to do the same.

    Most leads that are generated by rate sites and other online platforms have a limited window of opportunity. Specifically that if not responded to within 30 minutes the conversion ratio on the leads drops dramatically. We can only speculate on the dropped lead rate but we do know that for web generated leads there is a very low conversion rate in the mortgage industry. It could be that this is a solution by RateHub to reduce that for leads generated from their site. Under the current model they have limited control over the consumer experience. It is important to note that if there is a low conversion rate due to lack of response or long response time on leades it will result in dissatisfied consumers. Poor consumer experience will have a large impact on the continued viability of the site in the long term.

    Yes they earn revenues from the purchase of the leads, but the margins in a lead generation are even thinner than a mortgage brokerage. This may very well present a unique opportunity to convert a greater number of leads into real customers and at the same time generate greater revenues for themselves as an organization.

    I am not advocating for this move, nor am I advocating against it. I merely suggest that before we instantly rush to throw stones at them, we attempt to consider there are likely a variety of reasons why they have made this decision.

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