With interest rates being at an all time low, many people are trying to determine whether they should jump in and take advantage of such low variable or fixed rate mortgages. You could be in the market to purchase your first home or considering whether refinancing your existing mortgage would make financial sense. It only makes sense then that you want to get the best interest rate you deserve, right? Well not so fast….
Did you know that some banks don’t always offer you the lowest rate on your mortgage. That’s right, you may be led to believe that because you are a current customer of theirs, with good credit, and job stability, that you automatically will receive the best rate, well think again. Banks “choose” who they give their preferred rates too. I’ve had clients tell me this time and time again and it never ceases to amaze me that it still continues to happen both at the time you obtain your mortgage as well as at the time of your renewal.
A statistic provided by CMHC says that approximately 60% of canadians take the first rate the bank offers them at renewal. Just to give you snapshot of what that may look like; for example the banks posted rate today is 5.85% for a 5 year term. The discounted rate available is 4.39%. Thats a difference of 1.46%. Consider this the next time you go to sign your renewal agreement. Banks are in the business of making money, period. Remember you have the right to negotiate a better rate or seek out the services of a mortgage broker who is trained in negotiating better rates or take advantage of programs offered that allow you to switch your current mortgage to another lender with no fees and a much better rate.
Don’t be fooled into beleiving you have received the “best” rate. Get a second opinion every time. Consult a mortgage broker like myself to determine if you truly are receiving the best rate. I specialize only in mortgages and your positive mortgage experience is essential to my business , so your always guaranteed to receive the best rates as well as service!
Finance/mortgage industry professional located in the Interior BC
First Time Buyer
Line of Credit
Lets talk about your financing needs today! Great rates and Great Service!
View All Posts