RBC MORTGAGE RATES
Employee Pricing for all customers
One of Canada’s largest Banks, the Royal Bank (RBC) started a trend a few years ago with advertising “employee mortgage pricing”. all of the tv and on the radio.
They aren’t the only ones, Bank of Montreal (BMO) and HSBC have been advertising preferred interest rate programs as well. It’s important for everyone who is considering these lenders and to look further than just the interest rate.
Many of these advertisements either glaze over, or do not go into the fine print of the mortgage contracts at all, and if you are not paying attention, it could end up costing you thousands of dollars in unnecessary interest costs and fees. Most no frills mortgages are loaded with fine print restrictions, and these are the types of mortgages being offered. The ‘no frills mortage’ is a topic for a different blog post, and a different time!
The truth is the big banks have a substantial advertising budget, and they are sinking thousands of dollars into the common message with the intent of getting consumers to focus on one single aspect of a mortgage, and that is the rate.
Some people may argue that price is the most important thing to consider, and the truth is many clients will be swayed by the bank’s larger than life identity and recognition alone, despite all the “Smoke and Mirrors”.
The truth is, that the interest rate does not necessarily equal the price, especially when looking at the big picture of the cost of a mortgage. By making it all about the rate, and getting people to believe that rate equals price, the focus is shifted from what every single home buyer needing a mortgage should be most concerned with, and that is the big picture and overall cost of their financing. The truth is that the best rate does not necessarily mean the cheapest mortgage.
What’s even more amazing is that a customer can easily do better than these Employee priced mortgage rates.
Now of course not everyone hears about these deals because there aren’t any flashy ads on TV or the radio, and nobody is shouting off the rooftops about these deals.
Even more so than the rate though, these products with these lenders offer far better options and flexibility than the large banks do. In the long run, this could translate into even more savings on the cost of your financing.
So, if the interest rates are better, and the products are more flexible, then why would you consider going to a bank on your own, instead of coming to see an independent mortgage broker?
Did you know that virtually all of the big 5 banks in Canada make at least $2 billion dollars per quarter…..that is per quarter not year?
How do you think the banks make their money?
Studies show that 69% of people who take a 5 year mortgage end up making changes to their mortgage before their 5 years are up.
Studies also show that mortgage pre-payment penalty calculations are upwards of 3-4 times higher among the big 5. The odds are stacked, and they are in the banks favour.
Don’t fall victim to the noise and let your eyes glaze over with the pretty pictures and slick advertising. If you have any questions, you should connect and have a chat with your mortgage broker.
Employment status Impacting Your Mortgage Qualification
If you are applying for a mortgage, the chances are that you are feeling confident about your current employment status and your ability to find a similar position if need be. Your employment is a key aspect of being approved for a mortgage, and there are other aspects that you should familiarize yourself with as well.
First Time Home Buyer Vancouver
If you have reviewed your situation and have determined you are in a position to look at options in helping your children buy their first home, a good place to start would be to consider these options – Should you provide a Gift for the down payment money; Should you Co-sign or guarantee the mortgage…
Bank of Canada Rate Announcement
You have most certainly by now heard that about the Bank of Canada’s Announcement a couple of Wednesdays ago regarding their overnight lending rate drop. Their target rate was lowered by one quarter of a percentage point (previously at 1% to 0.75%) What this translates to is the Bank of Canada is the Bank to all of the Banks.
It’s important to give yourself the time to rationally consider whether what you’re getting is really the best mortgage rates in Canada. So before you jump on something that seems super low, such as the current mortgage rate, make sure you talk to an independent mortgage provider.
Co-signor vs Guarantor for a mortgage
If a buyer is unable to qualify for a mortgage due to poor credit, employment history, lack of down payment or income — most lenders will still consider lending if there is someone that the borrower can find who is willing to act as co-signor or guarantor for a mortgage.
Canada Mortgage Rates- a Handy Guide to cibc mortgage rates
All Canada fixed rate mortgages are closed term. A closed term means that penalties apply if you end the term early by pre-paying your mortgage, be it that you won the lottery or that you are selling your home.
First Time Home Buyers Plan
The first time home buyers plan permits you to use up to $25,000 of your RRSP savings towards the purchase of a home. You must be a Canadian resident and you must be buying the home for your primary residence. The funds must be in your personal name and in your registered account for at least 90 days.
RBC Mortgage Employee Pricing Mortgage Rates
The truth is the big banks have a substantial advertising budget, a budget that small business owners such as myself will never have. They are sinking thousands of dollars into the common message with the intent of getting consumers to focus on one single aspect of a mortgage, and that is the rate.
First Time Home Buyer Tips
First time home buyer tip number one, there is a first time home buyer plan tax credit available to you in British Columbia. If you meet the criteria. the tax credit can help alleviate the overall cost of your home. Something else that you really should do is get a mortgage pre-approval – this is important as you will then know how much you can afford to spend.
Subject Free Offers in Real Estate
Whenever the market becomes competitive, it seems that the norm is to make subject free offers, or write offers with shortened subject removal timelines. Now, really when you think about it, a shortened subject removal timeline does not really do anyone any good, as everyone is scrambling around to meet an impossible turn around time of 24 hours for instance.