calgary mortgage negotiation

Dec 21, 2020 | Mortgages | 0 comments

Can you negotiate your mortgage rate?

Mortgages | 0 comments

If you’re unaware that you can actually ASK for a better mortgage rate, don’t worry, you’re not the only one!  Most Canadians don’t realize that you can negotiate your mortgage rate at each renewal, AND you can consider breaking your mortgage part way through the term to obtain a better rate. 

When you’re doing your research about rates to obtain a mortgage or renew a current mortgage, it’s important to know that banks have 2 rates:

Advertised Rates 

These rates will be listed on your bank’s website.

Discretionary Rates

These rates you’re able to negotiate and they are often not disclosed upfront to a borrower.  Some lenders can offer you a better rate than what they openly advertise. However, not all banks can offer these rates if they want to.

Can anyone benefit from these rates?

Yes and No. Preferred rates depend on a variety of factors, including your history with your lender, your credit score, and, your ability to obtain the information that you require to negotiate well.  Understanding where you stand financially and what rates are available in the market will give you more leverage to begin your negotiation.

When you’re dealing with a banker, they have access to all the rates offered at that specific lending institution.  They don’t have the ability to shop your mortgage between lenders.  If you’re dealing with a broker, they do have the ability to shop between lenders.  They will work for you, comparing your specific mortgage file again all the best rates available in the market. 

A lot of our mortgage partners will start their discovery call by asking what your current lender is offering and offering you some advice for negotiations at your current bank.  If your current bank is unwilling to match their offer, then they dive into looking to move the mortgage for you. 

Bottom Line

If you’ve got a strong credit and income profile and your property is marketable, you should have access to the best rates in the market.  It’s definitely a good idea to ask your bank if they’re able to decrease their rate, but it’s also a good idea to gather information about what other lenders are offering. 

    mortgage negotiations in calgary

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