Don’t see your banker for a mortgage before seeing these 2 fail proof tips from an ex banker to getting the absolute best rate for your mortgage. Chances are they will be ideas that you never used before.
When shopping for a mortgage the factor that most people look for is the interest rate. Here are 2 tips for getting the absolute best rate for your mortgage:
- If you have investments, bring your statements to the banks and tell them you will consider transferring your assets to them if you get the lowest rate. Tell them as well that you want to meet with their financial planner to consider his opinion on your investments. When bankers see statements from other institutions they start to salivate. You see, when a bank sells a mortgage, the profits are minimal and in some cases close to nil because of the fierce competition for the business. Banks are hoping that you transfer your investments and RRSPs to them because they make tons of money due to the very high fees on mutual funds (which are hidden somewhere in a 200 page prospectus). The salesperson has an incredibly high sales quota for mutual funds and will do anything to gather assets. If you tempt them with the idea that you want to consider them for their investments as well, you will get the best rate possible.
- Tell them that you will take insurance with them if you get the best rate. If you really want, or need insurance you can then go to an insurance broker and a same type policy with a much lower premium. You can then cancel your bank’s insurance policy and opt for the lower cost solution from the insurance broker. Make sure you ask your banker how much time you have to cancel the insurance if you change your mind.
The other obvious tool you have is to bring with you the rates that you see online for mortgages. Just google “best mortgage rate in Canada” and you will find the lowest rates from over 30 different institutions
Although interest rate is important, it should not be the only factor to consider. The terms of the mortgage is also important and can provide you with flexibility in your repayments options.
For more details, send me a message or email me at john.kalos@meritfinancialplanning.ca
