Mortgage options at a click of the mouse

February 28, 2013 -

If you're in the market for a new home, or are looking to refinance your current abode, you've likely made a trip to your home bank branch to inquire about mortgage options.

Penelope Graham
mortgage at a click of the mouseSpecial to QMI Agency

It’s also quite likely that they’ve presented you with a seemingly great — or at least affordable — deal. Heck, perhaps they’ve even tossed in a no-fee chequing account for free!
It’s a convenient way to handle what is probably the biggest financial commitment of your lifetime — but if you haven’t explored your other options, you could be missing out on potentially thousands of dollars.
Beyond your comfort zone
When it comes to comparison shopping, a recent study has shown that those who are knowledgable about other lenders’ offerings were more likely to score a better mortgage rate — yet nearly 50% of shoppers only received one quote.
The study is from the Bank of Canada and titled Price Negotiation in Differentiated Products Markets: Evidence From the Canadian Mortgage Market.
It shows when it comes to picking financial products, Canadians may be a bit too loyal for their own good. In fact, it found mortgage shoppers who don’t compare the market always pay more.
On the flipside, it was found that consumers who were aware of their market options were less likely to be swayed by big bank convenience, picking instead competitive rates from other lenders. Even those who stuck with their home bank, but questioned the posted rate, were given a discount — and all they had to do was ask.
Comparison shopping made easy
It’s understandable why so many consumers hesitate to stray from their home bank. After all, lenders do their best to make it easy for you to stick with them. Scoping out the market used to mean spending the time to inquire and negotiate with each bank and sift through their fine print, but it doesn’t have to be a painful process. Rate comparison resources, such as RateSupermarket.ca, are becoming a prevalent part of the market, and an important financial resource.
How it works
Using a comparison site such as RateSupermarket.ca, you can easily access the best mortgage rates in the market, across Canada and see how your bank stacks up.
Can’t decide between a fixed or variable rate? You can also narrow your search by comparing by mortgage type, pre-payment options, or mortgage term. Compare your options, see what’s best for your needs, and connect to an expert who’s offering that rate with the click of a button.
Knowledge is power
Comparing the market can help your purchasing power in several ways. First, you’re likely to find the same product, but for less — and what savvy bargain shopper could pass that up?
Second, customers with insight to the rates offered by other lenders are more likely to march into their home branch and ask for a better deal. After all, ignorance may be bliss but not when it comes to your money.

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