Lead Mortgage Broker with over 30 years of mortgage expertise, currently at Mortgage Architects.

Ratehub: Should I Be Using A Service Like That?

Want the best mortgage rate? Of course! Going online with Ratehub is my best bet…not so fast.

Maybe a mortgage broker, maybe or maybe not. Let’s explore.

The future is arriving soon: robots, artificial intelligence, the rapid rise of online shopping, the list goes on and on. Who would have thought companies like Amazon, Walmart and even Zappos (shoes) would change the retail space of our stores and needless to say, the future of malls. It is happening in the financial world including with Canadian Mortgages. Companies such as Ratespy, Ratehub and Rate Supermarket have entered the mortgage market and are starting to put a financial imprint in the home lending area. Should the Big 6 Chartered Banks be scared? I would think so.

There are many advantages to this trend of shopping online for a mortgage. Let’s examine these advantages:

Pros of Online Ratehub Shopping for a Mortgage

• Convenient to shop and compare mortgages in your own home
• Great place to get started in your ability to see where mortgage rates are
• Excellent source for educated mortgage clients who now have a one-stop rate comparison
• Rates are great for easy mortgages
• Challenging the status quo of the Big 6 Canadian Banks
• It will be a long-term trend of the future

Not all is rosy with shopping for mortgages on a personal computer. It still has growing pains for the average Canadian Mortgage Consume.

Here are some of the drawbacks at this time:

• The majority of Canadians are not well-enlightened to the mortgage jargon
• Their advertising is misleading as they advertise teaser rates which do not apply to most consumer
• Most great rates include lender stipulations and restrictions
• Their products are limited, especially for clients with poor credit, the self-employed or mortgagors who live in remote areas
• Rates vary greatly for rental properties and refinances, the great rates do not apply
• No after service market
• In my humble opinion, there is a conflict of interest that they own Canwise Financial. Thus, they are truly not independent

The future of shopping for a mortgage online is bright. However, currently, Canadians need hand holding and guidance in searching for proper home financing. The best option is having a mortgage broker. This may sound self-serving but the clients get the best of all worlds, including in most the cases, the best rates, assistance, and after closing service. The consumers get the best of all worlds at this time with a mortgage broker. As time goes on, sites like Ratehub will grow with better advanced products for all consumers and will continue to increase their market share. Unfortunately, the time is not now.

Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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