Are rate comparison sites worth it — or just fishing for your info?

What are mortgage rate comparison sites — and how do they work?

You could argue that rate comparison sites are a necessary service in the mortgage industry. They've existed for years, they promote rate competition among lenders (which can benefit home buyers and owners), and they provide an eyeful of (potential) rate offers from several sources in one place. Some lenders and brokers rely on these sites for a steady source of mortgage leads.

However, they also aren't about putting your mortgage needs first. And they come with certain risks, not the least of which is the potential for your personal information to end up in a place you didn't expect.

Rate sites look helpful — but they’re built to generate leads. 

The primary purpose of most rate comparison sites isn't to save you cash or offer a solution that fits. They exist to capture your details to generate paid leads for lenders and targeted lists for other vendors.

Multiple rates and sources are usually listed, but are the rates real?

Most of the banks, non-bank lenders, and brokers you see pay to be listed on these sites, with some offering very competitive rates to attract more clicks.

Or, some rates shown may be scraped from various internet sources, such as lender or broker websites, and the rates may not be accurate, or the sources may be unaware they've been included.

Here’s an example of a rate site showing lender rates that are actually HIGHER than what the lender lists, which can be misleading or help ‘lower rates’ on the list look more attractive:

Are these rates higher because the scrape engine hasn’t caught up to the 'real' lender rates? It’s doubtful those lenders are paying to have higher rates listed on a rate site.

Some mortgage lenders (like True North) may not be included for 'free' because their rates are too competitive with the paying lenders, and they'll complain loudly if rate changes aren't updated instantly.

Lenders often pay twice for your lead.

In addition to paying to be listed higher up, lenders and brokers may pay again (handsomely) for your info. Some may only pay for leads at a certain point in the funnel — for example, if a form is 'up for grabs.' Your mortgage needs become the product, not the priority.

See rates without a disclosed lender?

Used to populate their list, the lender may be hidden until you 'sign up' or as a way to tempt you to fill out a form. You might be directed to the next lender or broker in line waiting to pay for a lead.

Heavy in content, but not necessarily in accuracy.

Trying to reach your eyeballs and click-brain faster, some rate sites have copious quantities of 'educational' or trending content and data targeting SEO. Data may be AI-generated and outdated.

Privacy policies (have to) clearly indicate that your data is now theirs to sell.

You may see wording that outlines both your risk and their intent in selling your details, such as:

• 'Your information may be used by our vendors for purposes not defined in this policy.'
• 'You understand that we cannot guarantee and are not responsible for the accuracy of any information on our platform and that of our vendors.'
• 'We will not be a party to or held responsible for any arrangement, implicit or explicit, that you may have with our vendors regarding the use of your information and any consequences that may arise from that use.'

Get a sense of rates, but be aware of the risks before taking the bait.

These sites can give you a rough idea of current market rates. But the best rate you qualify for may get lost in the lead shuffle — and sharing your info could open the door to third-party marketing you didn’t ask for.

What happens when you hit 'submit' on a rate site?

Submitting one form can trigger a wave of mortgage 'help' that can eat up your time and get in the way of finding a budget-friendly solution.

Here's what happens behind the scenes once you hit 'send' on a rate site form:

• The submission typically means that you agree to allow the site to use your personal info.
• The form is likely to be sold to one or more mortgage lenders — if a lender doesn't pick it up, you may be 'ghosted' and not receive follow-up.
• You could get multiple calls or emails from one or more lenders or brokers.
• You may get solicitation from industry-related businesses.
• Regardless of your initial rate offer, you'll still need to submit a complete mortgage application to determine the rate you'll qualify for (which typically requires a credit and income check and possibly passing the federal mortgage stress test).

If you're comfortable providing your personal information to a rate site, you may also find that the process works out for you in getting a rate and mortgage that suits your situation.

Can you get the low rates listed?

You might, or you might not. Some rates on these lead-selling sites are there to attract your attention.

All lenders want to advertise their best possible rates to bring you in, but rate sites provide you with several choices, including bait-and-switch rates, to convince you to go through them instead of elsewhere in your search.

• Ultra-low rates often reflect best-case profiles — not average borrowers.
• Rates may reflect stricter qualification criteria, restrictions (such as a bona-fide sale clause), or higher prepayment penalties.
• Some lenders pay more to have their rates appear at the top of the rate list, but that doesn't mean you'll get that rate.

Bottom line: Those eye-catching rates may not apply or may come with fine print that makes them more expensive later if you need a change.

What happens to your personal information?

You're just trying to check a mortgage rate on a rate site, but what you might be signing up for instead is a privacy nightmare.

Who’s getting your info? Your details likely aren't being shared with just one lender. Your information may be sold to multiple parties — lenders, brokers, marketing platforms, or data vendors. And the rate site isn’t obligated to tell you exactly where it's going. So once you hit 'submit,' you won't be sure of where it goes, and you'll lose track of it from there.

Where do you find out how your info is treated? Canadian companies are legally required to disclose what they will and won't do with your data. For rate sites, you’ll need to look through the site’s Privacy Policy, Terms and Conditions, or Disclosures. The link to this content may be located somewhere on the rate quote form (or it may be available at the end of the fill-out process), at the bottom of the rate list page, or in the website footer.

If your information is only shared (sold) to the source that provided the rate, you'll have another definitive place to look: through the lender's or broker's policy to see what they might do with it.

What should you look for? Scan for a topic like: "What happens to your personal information?" and look for terms like “our partners,” “vendors,” or “affiliates,” and policies that mention that your data may be used for marketing, remarketing, or business analytics.

What does info sharing mean for you? If your info makes it out to other companies, you could receive calls, emails, or targeted ads — even from companies you’ve never contacted. In some cases, that exposure may occur days or weeks after you submit your form, making it more difficult to trace back.

Taking the rate-site bait could land you in a sea of remarketing — for way more data sharing than you signed up for.

Here's a much better way to get a rate quote.

Want the best rate — without the rate and privacy risk?

Skip the rate site and go directly to a trusted mortgage broker (like us), who can offer a real quote based on the lender and product that best fits your unique situation, and in your preferred language.

You could also go directly to a bank, but you're still getting a one-lender option compared to an expert broker who shops several lenders and products on your behalf.

In fact, a rate site’s own terms admit it — consult a professional!

"You are responsible for ensuring that any such agreement is in your own interest. This includes conducting your own research and consulting a professional." (according to a rate site's Terms and Conditions.)

Using a rate site means you're not getting personalized service. Additionally, you're taking on risks that include being presented with a rate and a mortgage that may later prove more costly.

Go direct to True North Mortgage for your best rate.

We admit we're biased on this topic, as we'd prefer clients to come directly to us rather than give up time and compromise privacy through a rate site.

We’ve been helping Canadians get better mortgages for nearly two decades, with a fast and simple mortgage pre-approval and approval process that puts you first.

And, here's what we don't do. We don’t pay to be on list sites. We don’t sell or resell your info. We don’t share your details with multiple lenders — just with the one that needs to approve and service your mortgage.

And we’ll never offer you a rate that doesn’t exist, or a mortgage that doesn’t work for your situation.

But don't take our word for it. Read through our thousands of 5-star reviews — the most in the mortgage industry, by far — to see what our amazing clients have to say about their experience and mortgage savings.

Looking for your best mortgage rate? Get friendly, personalized service, coast-to-coast-to-coast. Give us a shout online, over the phone, by email, or stop by a True North Mortgage store near you.