True North no longer advertising on RateHub.ca

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True North Mortgage announced in an official release Monday that it will no longer advertise its rates on RateHub.ca.

“As a Board we could not get past the fact that James Laird now controls more than 50 per cent of the RateHub.ca stock. In our minds this would give RateHub’s proposed mortgage brokerage division too much influence,” Dan Eisner, CEO of True North Mortgage said in the release. “Even a small change to their algorithms could have a significant influence on the quality of leads sent to True North Mortgage.”

True North Mortgage has been one of the popular rate site’s biggest supporters. However, RateHub.ca has come under fire following the announcement that a RateHub mortgage brokerage is set to be established later this year.

The reason for True North Mortgage’s pulled support is due to a business model it views will give an unfair advantage to the fledgling RateHub brokerage.

“The True North Mortgage Board doesn't feel the fairness and integrity of RateHub.ca can be maintained when one listed Broker pays nothing for a lead while all other listed Brokers pay for leads,” Eisner said. “We feel, given the new RateHub.ca business model, the only way to maintain equity within the system is to not charge any broker just as RateSpy.ca does today.”

True North will continue to support other rate sites.

“Each Broker out there must make their own business decision that they feel is good for them, their clients, and their shareholders,” Eisner said. “For True North Mortgage it will be spending our advertising dollars with the other rate comparison sites that don't come with the risks of apparent and hidden self-dealing.”
 
 
  • Anonymous Broker on 2014-07-23 4:19:20 PM

    Life lesson for Eisner here: Be careful with who you go to bed with, because sometimes you wake up with an STD.

  • Ron Butler on 2014-07-23 4:28:23 PM

    @ Anonymous Broker............ please stay anonymous. Life Lesson for you: on the best day of your life you would not measure up to the heel of Dan Eisner's shoe as far as the mortgage brokerage business is concerned. You should worry about moving your mortgage practise out of your parents basement before you start mouthing off "life lessons" to a Billion Dollar broker.

  • Claudio on 2015-01-06 12:37:51 AM

    It's going to be ending of mine day, but before finish I am reading this wonderful paragraph to increase my experience.

  • M. Robertson on 2015-01-07 2:15:00 PM

    The writing was on the wall when Rate Hub announced that they were creating a brokerage.

    The reality? Rate Hub now has more controls on the consumer experience with their brand, which is not a bad move on their part considering that the consumer will ALWAYS relate their experience to where they first made the inquiry as opposed to who the broker was.

    True North no longer purchasing leads from Rate Hub is not going to hurt Rate Hub, nor will it if any other broker makes the same decision. If anything it will only increase their margins on leads received and allow them to spend more money driving traffic.

    The question should be... with the extremely high overhead and low traffic at the True North stores - how will they compensate effectively? Rate Hub was a big source for them for business.

    The claim of lots of walk in traffic... I have an office that is very close to one of their stores, I walk past it multiple times a day, and in all the years that they have been there, I have never once seen a customer in their shop.

  • Victor Simone on 2015-01-07 2:28:21 PM

    Overhead blows, but True North's retail efforts is really something I enjoy seeing from the brokerage community. It's always risky to go retail, but it has payoffs too.

    If you don't see folks in their stores, does that mean the retail shop isn't working ? Tough to say....this is like going into a store to see merchandise and then buying the item online.

    Every retailer has the same problem, folks look around and then the clients leave. Does it mean that retailers are done for ? Again, not sure.

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