That’s what a report in the latest Bank of Canada Review had to say… This article in the National Post sums it up well… “Simply put, borrowers are often complacent and end up paying more than they should.”
This is exactly the reason I started this site…..To make you an informed borrower. Like the review said, “consumers have different preferences and skills when shopping and bargaining for a mortgage and where lenders maximize profits based on observing these preferences and skills.”
So, how does the average Canadian borrower know if they are getting the absolute best rate or the right mortgage product? Is there a better product with a different Bank, Financial institutions or other Lender? How do you know if you aren’t speaking with an unbiased professional that doesn’t work for any one bank? For me, there is only one sure way to know you are getting a highly competitive mortgage product…..You must deal with a Mortgage Broker.
Here’s another quote from the Bank of Canada Review… “Canadian lenders appear to be extremely slow to pass on changes in the Bank Rate to their customers.” I’m sure this comes as no surprise to most of us.
Never forget that the Banks are a business… and they are here to make a profit… It’s imperative to seek unbiased, market neutral advice….. A Bank Mortgage Specialist just can’t be neutral or unbiased….They can only offer one set of products… I save the best for last….
A Mortgage Broker helps to ‘creates competition’ as the report said.
Hopefully, this site will keep you informed and awake…Don’t settle for the status quo….