“They didn’t just pull our rate, they kicked us off Ratehub.ca – they won’t let us go on [anymore]. They gave us two reasons. One, [Alyssa Richard, RateHub.ca founder] doesn’t support us advertising that rate because she feels the product is not achievable for people to be approved on, which I don’t agree with,” Steve Pipkey of Verico
Spin Mortgage told MortgageBrokerNews.ca. “And then she said she didn’t like that we would come on and off the site as frequently as we did … when we signed up there was no rule or stipulation about [doing that]. We only want to be on during business hours.”
According to Pipkey, Ratehub had not raised the issue of Spin Mortgage’s infrequent use until it had posted the 2.44 per cent five-year fixed rate – the lowest on the site at the time.
“There was no warning,” Pipkey said. “Had she come to us and said, ‘hey guys, I don’t like the fact that you’re coming on each day for two hours; if it’s a servicing problem why don’t you think of coming on for one day a week for a whole day,’ that would have given us the business case to [consider it]. But she just outright booted us.”
The Globe and Mail reported Thursday that Spin Mortgage’s 2.44 per cent five-year fixed rate had been removed by the popular rate site. The article listed a number of restrictions tied to the rate which Pipkey says were inaccurate.
“The problem with the Globe article is there were some inaccuracies. That product is good for high ratio or conventional; it’s good for refinances, transfers [only in Ontario], or purchases,” Pipkey said. “The biggest downfall to the product is simply the 30 day close because that is hard to do [for some people].”
He isn’t sure where the Globe and Mail got the inaccurate info, which stated that the mortgage: “had to be closed within 30 days, the rate was only good for new purchases, not refinancings or renewals, was open only to insured mortgages (those with less than 20 per cent down), and couldn’t be used to fund rental properties.”
For her part, Alyssa Richard said the rate was taken down because only ten per cent of clients would qualify for it and that it was merely being used to bait-and-switch clients into other products.
“How can you quantify that?” Pipkey said. “It certainly isn’t a slam dunk deal but I closed one last week and I’m closing one today.
“There is always talk about bait-and-switch; the fact is this rate pays better than anything else … so there is absolutely no bait-and-switch.”
Calls to Ratehub were not returned.
The broker who had his rate removed from RateHub.ca alleges he has also been barred from using the site in the future.