There's nothing inherently wrong with rate sites, says top-performer Calum Ross, but they may obscure the other, arguably better ways professional brokers can save clients money.
Video transcript below:
Reporter: Providing the best rate is an integral part of winning customer referrals. So brokers are exploring many avenues to compare the best rate. But are rate comparison sites the best way to do so? We find out in this week’s Big Story on Mortgage Broker News.
Interest rate comparison sites are rising in popularity for a couple of reasons. Broker, Calum Ross explains.
Calum Ross, President, The Mortgage Management Group
Calum Ross: You know I think rate comparison sites are a very useful tool for a lot of people, but in fairness I don’t think that they are rolled in for a lot of consumers, because obviously there is quoted rates and real rates. And you know a client’s mortgage options are specific as they are. It’s a great tool to get general transit information, but it’s been my experience, a lot of rates quoted on there are actually not the most effective products for clients and they are not necessarily in the client’s best interest.
Reporter: But while offering a low rate is an important part of the process, it isn’t necessarily the be all and end all when it comes to winning client satisfaction. So how important is the rate when competing for business?
Calum Ross: I think rate is an important element for clients but you know most people think they actually want the lowest rates, when in fact what they really want is they want to save the most amount of money. The challenge is of course, that a lot of consumers don’t differentiate between the rate and the savings and you know when you are talking about a real estate investor or a more specificated consumer, in more cases than not, it’s often the type of products and the structure of it that saves people a lot more money than what you might find in terms of an interest rate. It’s because typically the difference between the most competitive this kind of rate and the generally available rates, in very real terms amounts to a insignificant amount of money and so making sure the product fits more specifically the client’s financial goals plays a much better role in saving money and building wealth.