Mortgage Rates

Recent Article published in the paper talks about more than just bank mortgage rates

The Globe and Mail a little while ago, printed an article titled Amid fierce mortgage battle, some banks shifting focus from rates to features, The article talks about two banks that are finally admitting that there is more to a mortgage thank just bank mortgage rates.  Of course, this is what mortgage brokers like me have been saying for years…

Selecting the right mortgage product is a lot more than just finding the lowest bank mortgage rate.

The main point of the article is that banks are changing their marketing strategy because what they have been doing in the past is not as effective in today’s ultra-low rate environment.

A direct quote from the article: “With interest rates at record lows and banks increasingly battling with credit unions and other non-bank lenders for market share, lenders are having a difficult time standing out from the pack… In the era of low rates and fierce competition among mortgage providers, banks are now finding diminishing returns from spending marketing budgets on campaigns aimed at offering the lowest rate.”

So only now that advertising rates is proving less effective do banks want to shift the conversation away from rates and onto mortgage features? How convenient. 

“We all know there is so much more involved in the home-buying decision and taking on such a large debt. To keep the conversation focused on just the rate does a disservice to consumers.” ~ Sean Amato-Gauci, RBC’s senior vice-president of home equity financing.

Let me cut to the chase. Banks will always change their message to sell you on what they want to sell you on. When you deal with a single institution, you are working with someone who has their own best interest in mind. There is a reason RBC’s profit hit $2.46 Billion in the first quarter of 2015. That is a brand new record by the way. And it should come as no surprise, as they are really good at making money.

Unlike dealing with a bank, when you deal with an independent mortgage broker, like myself, you are represented by your broker to several lending institutions so that you can choose what you want your mortgage to look like. Maybe (despite what the banks are now finally admitting that it is not all about) all you care about is rate… that’s not really a problem, an independent broker can get you an incredible rate on any term you like (not just the 5 yr fixed). We’ve got access to more than just one lender (try 50 plus).

Or maybe you are looking for flexibility, I will make sure you don’t get stuck in a collateral charge mortgage, but ask your TD salesperson if they will.

Or maybe you are self-employed and your income isn’t all that straightforward, no problems, I have lenders who understand your needs.

Regardless of your situation and whatever you are looking for in a mortgage, don’t limit yourself to a single institution’s products when you have access to the entire market for free… with professional unbiased advice