Bank Posted Mortgage Rates
What are bank posted mortgage rates?
Posted rates are the standard by which banks start their negotiating, expecting consumers to negotiate them down. Bank posted mortgage rates are the rates put on websites and flyers by the big five Canadian banks.
Does negotiating rates down increase customer satisfaction?
The banks find that their customers are happier with rates if people have worked the rates down by half a percent or so. The fact that often even these slightly discounted rates are a point or two above smaller lenders’ averages doesn’t hurt their profits either. But it is disingenuous towards their loyal customers either way.
In the end, the banks will get their money but there are benefits to be had by the customer as well. It is a win-win situation for both sides.
Comparing the bank posted mortgage rates to the best of the lenders
You don’t need to work down or negotiate better rates from a broker
Brokers aren’t in the business of wheeling and dealing with their clients. That’s why it is only natural that when enlisted they’re forthcoming about what rates they have. And exactly what you can qualify for.
Of course, that’s not to say that all banks are disingenuous or that all brokers are saints. Still, the relationship between a broker and his or her clients is far healthier than you may think.
In any event, these posted rates are there so that there is no need to work towards getting better rates. They are what they are and that allows the buyer to go forward with their purchase without needing to haggle.
Not having to haggle with rates can provide peace of mind for buyers. This allows them to focus on finding the home that they want rather than negotiating rates with a lender.