Negotiate Mortgage rates Broker vs bank

[MacDaddy77]

Has anyone had any luck negotiating with a bank for rates posted by a Mortgage Broker.

my mortgage is up this October and 6 months before expiry I'm looking to negotiate rates for the next 5 years.

the bank I'm with is posting 5 year fixed (I'm currently on 5 yr variable, however going fixed this time as rates are as low as they are going to go) at 5.24%

True North Mortgage has a rate posted 5 yr fixed at 2.84%.

if possible I'd prefer to keep my business at the bank but am not opposed to moving for a better rate.

really just interested if anyone has had success with this type of negotiation.

Thanks,

[rohara66]

I just re-signed my mortgage with Royal Bank (4 month early before it expired) and I told them on the phone when I made the appointment that I knew what other banks had for posted rates and that I was looking for them to match. They obviously didn’t agree to anything on the phone however when I went in they offered a lower rate than anything I could find published by any other lender (and lower than what RBC had published online) it to me with me even asking.

Considering the new rules for having to re-qualify if you switch lenders I figured they were going to try and screw me over, was shocked how it went haha.

Just keep in mind some of those lenders have crappy terms with their super low rates so all major lenders might not be able to match it exactly. But as long as you can get in the ballpark 0.05 doesn't make a huge difference.

[MarchHare]

I also renewed my mortgage within the last year.

We went to our existing lender first and asked for their best rate. We also went to a mortgage broker to see if they could do better. When the broker saw what our bank was offering us, she said it was unlikely she could find us a better rate. The banks will apparently give existing customers very aggressive rates to keep your business if you've always been good about making all your payments.

It didn't come to this, but I was prepared to close all my accounts with our bank if they weren't willing to give us the best rate. If you threaten to take not just your mortgage but also your chequing, savings, RRSP, TFSA, credit cards, and any other accounts you have to a competitive, I suspect they'll make an offer that's to your satisfaction.

[Travis Munroe]

It doesnt hurt to shop both.
The important thing is to match the terms with your lifestyle. Don't get suckered into the lowest rate that surrounds you in a brick wall.
If your interested I work with both brokers and banks....there free to talk to so its a win win!

[GoinAllTheWay]

Originally Posted by MarchHare

I also renewed my mortgage within the last year.

We went to our existing lender first and asked for their best rate. We also went to a mortgage broker to see if they could do better. When the broker saw what our bank was offering us, she said it was unlikely she could find us a better rate. The banks will apparently give existing customers very aggressive rates to keep your business if you've always been good about making all your payments.

It didn't come to this, but I was prepared to close all my accounts with our bank if they weren't willing to give us the best rate. If you threaten to take not just your mortgage but also your chequing, savings, RRSP, TFSA, credit cards, and any other accounts you have to a competitive, I suspect they'll make an offer that's to your satisfaction.

Wow...mine sure didn't. I've been with the Royal Bank for 20 yrs, had my mortgage with them for the past 5. Never missed a payment and have pretty much all my finances with them with the exeption of investments.

Their best offer (at the time) was 3.5 variable over 5 yrs. Walked two doors down to a mortgage broker near my office and within 5 mins had 2.9 5 yr fixed.

[macker]

Originally Posted by MacDaddy77

Has anyone had any luck negotiating with a bank for rates posted by a Mortgage Broker.

my mortgage is up this October and 6 months before expiry I'm looking to negotiate rates for the next 5 years.

the bank I'm with is posting 5 year fixed (I'm currently on 5 yr variable, however going fixed this time as rates are as low as they are going to go) at 5.24%

True North Mortgage has a rate posted 5 yr fixed at 2.84%.

if possible I'd prefer to keep my business at the bank but am not opposed to moving for a better rate.

really just interested if anyone has had success with this type of negotiation.

Thanks,

I think True North is/was almost a direct writer with ING. Interesting to see what happens now that ING has closed the doors to mortgage brokers. If you were thinking ING/True North you will likely end up with an offer from Scotiabank.

[wookster]

When we went through a broker we got a way better rate than when we dealt with our lender directly. We stayed with the same lender but when the broker was used, we ended up getting a rate that was 1.25% lower.

Just one scenario but we've done way better with a broker...

[GP_Matt]

I found that with information the banks are very competitive. Something as simple as asking everyone on here what recent rate they got is a great source.
Go into the bank and ask them what rate they will give you then tell them you can do way better (assuming they aren't the lowest). I don't like the broker route because you are introducing a third party into the transaction whereas I like to deal directly, but others will prefer the broker.

The banks posted rate is only for mobile homes and calculating penalties as far as I know.

[Deegee]

Originally Posted by GP_Matt

I found that with information the banks are very competitive. Something as simple as asking everyone on here what recent rate they got is a great source.
Go into the bank and ask them what rate they will give you then tell them you can do way better (assuming they aren't the lowest). I don't like the broker route because you are introducing a third party into the transaction whereas I like to deal directly, but others will prefer the broker.

The banks posted rate is only for mobile homes and calculating penalties as far as I know.

We calculate our penalties based on the "special" rates. I think most places do, too.

To answer the original poster I know our Credit Union that I work for will match broker deals and also can do residential mortgages rates on acreages up to full quarter section.

Just make sure you negotiate a fair term. Be honest with your lender.

[Minnie]

Originally Posted by wookster

When we went through a broker we got a way better rate than when we dealt with our lender directly. We stayed with the same lender but when the broker was used, we ended up getting a rate that was 1.25% lower.

Just one scenario but we've done way better with a broker...

Same for us.

[MacDaddy77]

Thanks everyone for your comments. I won't be starting the discussion until April/may. Ill update with what happens

[MoneyGuy]

I've seen the occasional case where a bank can get you a better rate, but it's very rare that you're better off with a broker than a bank. That rates are almost always better, the product selection is better and the advice is superior. I'd never deal with a bank.

[SeeGeeWhy]

Originally Posted by MoneyGuy

I've seen the occasional case where a bank can get you a better rate, but it's very rare that you're better off with a broker than a bank. That rates are almost always better, the product selection is better and the advice is superior. I'd never deal with a bank.

Am I the only one confused by this statement?

Do you prefer brokers or banks?

[First Lady]

Originally Posted by Realtor 1

It doesnt hurt to shop both.
The important thing is to match the terms with your lifestyle. Don't get suckered into the lowest rate that surrounds you in a brick wall.
If your interested I work with both brokers and banks....there free to talk to so its a win win!

How does (or would) this effect your credit rating?

For example, the bank will run a credit report and so will the broker. Or does the broker send you info to several creditors who each run the report.

Is it possible that you could end up with multiple hits for your credit report?

[blankall]

I got a better rate with my bank. This was 2 years ago, before the crazy sub 3 fixed rates.

I negotiated prime -.9% on a variable rate. Did take a few weeks of negotiating though. Had to go back and forth between my bank and a broker. Gave my bank the broker's bottom line, said beat that, or I'll walk they did. Did the same to a broker, and then went back to my bank one mroe time.

[bradster57]

Originally Posted by rohara66

I just re-signed my mortgage with Royal Bank (4 month early before it expired) and I told them on the phone when I made the appointment that I knew what other banks had for posted rates and that I was looking for them to match. They obviously didn’t agree to anything on the phone however when I went in they offered a lower rate than anything I could find published by any other lender (and lower than what RBC had published online) it to me with me even asking.

Considering the new rules for having to re-qualify if you switch lenders I figured they were going to try and screw me over, was shocked how it went haha.

Just keep in mind some of those lenders have crappy terms with their super low rates so all major lenders might not be able to match it exactly. But as long as you can get in the ballpark 0.05 doesn't make a huge difference.

What are these new rules if you switch lenders? My mortgage comes up in a year and I'm curious about how much work I would need to do to threaten to switch for a lower rate.

[chemgear]

Originally Posted by bradster57

What are these new rules if you switch lenders? My mortgage comes up in a year and I'm curious about how much work I would need to do to threaten to switch for a lower rate.

TD had a snafu with CBC recently about their mortgages - which apparently are all "collateral" mortgages. Just something to be aware of I guess - this is separate of the "new rules".

http://www.canadianmortgagetrends.co...mortgages.html

Collateral charges are designed so that you don’t need to pay refinance fees if you add more money to your mortgage. But they’re also criticized because, in most cases, they force you to pay legal/registration fees to switch to another lender (due to the way they’re registered). In turn, that roadblock helps the lender retain more customers.

[Deegee]

Originally Posted by bradster57

What are these new rules if you switch lenders? My mortgage comes up in a year and I'm curious about how much work I would need to do to threaten to switch for a lower rate.

The new high ratio rules don't apply for moving to another lender. Qualifying rules will still be the same as they were a few years ago.

[blankall]

Originally Posted by fotze

I like that you made the bank have to beat it. I remember I was re-upping with my bank, had to do the whole broker thing to get a lower rate, only then would they lower their offer to match. I told them they had to beat the rate or I am going with who initially offered the lower rate. They wouldn't (BMO) so I walked.

I am still amazed at these threads that people still don't know that you should shop around for your mortgage. The bank should turn you down if you have not shopped around. The numbers make a staggering amount of difference.

I have a lazy buddy who will shop around for an xbox controller, but when it came to his mortgage just went with his bank offer. I told him what difference 1% makes and he was "whatever". $20k totally doesn't matter you fataing idiot. He also pays H&R block $300 to do his taxes and he has one T4 and nothing else.

Yup.

The banks have a lot of lee-way. Not just the individual customer service reps, but also their managers. In dealing with a large institution like this, if you haven't forced the rep to get aproval from their manager, then there is still much more room to negotiate.

I also find it strange how people are unwilling to negotiate on mortgage rates. As you say, we're talking about fairly large swings of cash. You should treat it like negotiating a vehicle....only with more money on the line.

[GGG]

How far in advance to you start negotiating on these. Our term is up 1 year from now and would like to know when to start.