“What is your best 5 year rate?”

That question is usually asked by shoppers firstly when they contact mortgage agents



You may be surprised: why the wanted super-low rate is not published in this site? In the real life, the rate depends on many different factors related both to you (credit score, down payment size, type and length of employment etc.) and the mortgage parameters and options (I will draw an analogy between mortgages and cars: is the cheapest car - the best car?).

Internet sites of some mortgage agents lure clients with headers like "Lowest mortgage rates!", "Nobody breaks our rates!" etc. Those statements imply that this agent has the lowest rates for everyone. Unless an agent can prove this statement to be factual, they can be considered false. Consider what the agent would have to do to prove such a statement. This would require being able to state without doubt that he/she knows all of the other rates, that every brokerage and lender offer, and has the lowest of them all. If the agent is not able to prove this statement, he/she violates section 9 of Mortgage Brokerage, Lenders and Administrators Act, 2006, Regulation 187: "A mortgage broker or agent shall not include false, misleading or deceptive information in his or her public relations materials."

It is likely that I will get the desired rate for you (after all, I work with the same lenders as those "masters of promise", and I want you to be satisfied and recommend my service), but no mortgage agent in Canada can honestly guarantee it in advance.

I will not mislead you by posting the lowest rate, existing today for a "no-frills" mortgage (you don't want it!) for a borrower with brilliant credit, huge down payment and many years on a full time position, just to attract you, and then to offer a more expensive mortgage product - I don't practice the Bait And Switch "marketing tactics". You can find the "lowest" rate in the Internet by yourself; however, to a non-ideal borrower, it, unfortunately, does not apply. But I can say with the outmost of certainty that I can get you the best rate possible in your financial circumstances.

Rate buydown


For my clients, I practice what is called "rate buydown" in the financial jargon. When a mortgage agent "buys down" the rates, it involves sacrificing some of the commission (paid by the lender) to get clients the lowest possible rate. Some lenders offer this special option to mortgage professionals in order to stay competitive.

I frequently "buy down" rates to get the customer not only the best product for them, but the best product at a lower rate. Miracles do not happen, but the rate is often slightly reduced.

For customers there a few things you should know:

  • The mortgages with "bought down" rate are not "no-frills" products. It's the same product with absolutely same features (such as prepayment privileges etc.) but at a better rate.

  • Getting a better rate from me does not mean skimping on service.
By the way, not all mortgage agents buy rates down, so always ask this question when choosing a mortgage specialist. If you'll go directly to the bank, even don't ask - there is no such thing as rate buydown there.

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Once you are interested in obtaining a mortgage, then you most likely will also be interested in the help of an experienced real estate agent:

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