Is your Bank Manager really getting you the best rate?
Posted on Nov 22, 2012 in Mortgage Market Updates and News
"I've been with my bank 30 years, so they give me the best rate available and waive fees for me. Brokers cant compete with that." I hear this almost daily from potential clients. People are very loyal to their banks, and expect (as well as assume), that they get that same loyalty back. In many cases they do, but what people don't consider, is whether they're getting the overall best rate and product, or just the banks best rate and product.
When you go to a bank, you are doing just that, going to the bank, one bank. That one bank has only a handful or mortgage products and limited flexibility on rates. When you go to a broker, you have access to 20+ lenders just from that one broker, quite often even your own bank. While many people think they can get better rates with their bank by actually going into their banks, quite often that' not the case. I've gone into Scotia bank myself personally and had them tell me their best 5 year rate was 3.39%, when I had 3.19% at the broker level. Now this doesn't happen all the time, but it does happen. This is why its always important to shop around.
On the fee side of things, the banks preferred clients often have fees waived, like appraisals, etc. Many people again think they can't get this service with a broker, when in reality, many broker lenders don't even require appraisals. So that fee wouldn't exist either way.
Please don't misunderstand this post to mean brokers are always able to offer better products and rates than banks, because that's just not always the case. But vise versa, it's certainly not always the case that banks (specifically bank managers), can offer better rates and products than mortgage brokers. I believe in always getting a second opinion. After all when it comes to hundreds of thousands of dollars, .1% can make a huge difference. Shouldn't you be certain you're getting the lowest overall cost?
-Sharie Marie Minions, Mortgage Professional TMG The Mortgage Group Canada In 250.730.0239 firstname.lastname@example.org