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