I’m sure you’ve seen the ads pop up when online, on TV or heard them on the radio? Mortgage brokers advertising a “super low rate” for a mortgage. They make it sound like they have special rates that no one else does.
Is it true? Do these people actually have the best rates that no one else can access?
Let’s dig a bit deeper to find out.
Why do they advertise such low rates if you likely don’t qualify for such a rate?
The advertised rates of many of the online brokers are the lowest possible rate for a particular term and only apply in certain very specific situations. Not everyone, and in fact most customers, won’t qualify for those rates! Their intent is to get you hooked with the low rate offering and then break the news with the actual rate that you will qualify for. By then you are probably far enough along in the process that you will just accept it and they have your business.
How is Canadian Mortgage Authority different?
At Canadian Mortgage Authority, we have access to those same low rates however we feel that it isn’t fair to advertise them as if they are available to everyone. What we do promise is that you will get the absolute best service through our experience and the best rate for your situation. Having gone through our mortgage consulting process together, we will decide on the product that will best meet your individual needs and then we will obtain the best rate for that product that is available across the mortgage lender market.
The majority of mortgage brokers typically have access to the same lenders and experienced brokerages such as ourselves have “top tier” status with these lenders, so if you qualify for the product of a lender that offers that particular “low rate offer” advertised offer, then it will typically be the same if not lower with us.
Lenders regularly change their rates, so the best rate today with Bank A, might not be the best rate tomorrow. The product that is best for one person with possibly the “lowest current rate” isn’t necessarily the best product for you.
What to keep in mind
When choosing a mortgage broker, don’t get pulled in by these low-advertised rate traps. There is a lot more involved with effectively providing mortgages than advertising a rate, and waiting for people to call asking for it. The rate is actually the last thing that should be discussed. The most important topic needs to be what your individual needs are. Your mortgage broker should be discussing how they can meet your needs with specific products and how those products can benefit you. Of course, the rate is an important factor however you should be receiving the best rate on the product that best meets your needs.
Do yourself a favour and avoid the rate trap and deal with an experienced local broker. We’re always happy to take a look at your situation and provide you with options to meet your needs. Contact us today for more information and to get started!