What you need to know when you hear major lenders promoting a “Rate Match”

Perhaps you have heard the scuttlebutt surrounding a major lender’s newly launched “Rate Match” campaign.  Launched earlier this month, this lender is promising to match the mortgage rates of 10 Canadian financial institutions.  Sounds great, right? 

Here is a question... Why are YOU, the client, responsible for doing all of the work in order to find a better rate?  Another question would be if you are going to do the work yourself, why would you stay with this lender if you could get a better rate elsewhere?

It is interesting to note that the 10 Canadian financial institutions do not include monolines.  (A “monoline” lender only focuses on mortgages and does not have other products that can be cross-sold.)  Monoline rates can often be lower than banks and credit unions.

Did you know that a mortgage broker has access to a huge range of lenders including most banks, local credit unions AND monolines?  With more than 50 different lenders available to the mortgage broker, he or she can help match the perfect mortgage product and rate suited to your needs.  The Mortgage Broker does the work – NOT the client.

Getting the best possible rate you qualify for can potentially save you thousands of dollars in interest.  It is important to also remember that you need to deal with a professional that will secure the Best Rate and also protect you from prohibitive pre-payment penalties when you pay your mortgage off.

Remember your mortgage broker not just on your first mortgage, but on every mortgage.  It is advice you can trust!