How many of you went to the bank for your mortgage?
How many of you shopped the banks for your mortgage?
Did you know that every time you went to the bank, they pulled your beacon score (credit score) and if you went to more than one bank they pulled it again and again.
Every time they pull your credit score it drops by a little. To Equifax it seems like you are searching for credit and they lower it every time you make an inquiry.
What a broker does is pull it once and shops the banks and lenders to find you an excellent rate and a product that best suits your needs. In essence this saves your beacon score and the higher your beacon score, the lower your rate of interest on your Toronto mortgage.
The Paul Sidhu team has access to dozens of lenders, each with 5 or more products that means that there’s hundreds of products out their, it’s our job to help find the one that’s best for you.
The bank only has only a handful of products and they may not be the product to best suit you and you may not necessarily get the best rate. Hence the penalties if you try to opt out of your mortgage.
You may have heard of the terms floor rate and ceiling rate. Banks use these to up-sell their clients or reserve the floor rate for their preferred clients. The floor rate is the lowest rate that the bank can give their client while the ceiling rate is the higher of the two and is the rate that they will try and offer you.
Most of the time if you get a better rate from somewhere else, the bank will then offer to match that rate. But you will still have to do all the leg work. But why not just get the best service, with extremely competitive rates, without doing any leg work the first time.
Find out how in our importance of service and credit section.
{ 2 comments… read them below or add one }
How do I get the preferred rate from my bank if I’m not a preferred client? Do you provide mortgages with my bank?
@Thomas White
Thomas, it’s hard to get the preferred rate without having them competing against someone else for your mortgagee. Our brokerage deals with all the major financial institutions and usually can offer a rate that is at par or below the banks preferred rate. Contact me and I can let you know the rate that we are offered from your financial institution.
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