Are the top six banks taking advantage of you?

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Are the top six banks taking advantage of you?

Are the top six banks taking advantage of you? Do you need help in finding the best mortgage rates? or best mortgage products?  We do business with smaller financial institutions to bring you an alternative solution and best mortgage rates. Our service is Free.  Contact one of our mortgage brokers, and we’ll walk you every step of the way and explain the pros and cons of each lender and their rates.

The top six banks dominate the Canadian mortgage market however it might not be the most effective alternative for borrowers.

An analysis has found that in 2018, Canada’s largest banks – RBC, TD, BMO, Scotiabank, CIBC, and commercial bank of Canada – were systematically the first costly mortgage options for mortgage borrowers.

Even the bottom rates of the top six were forever costlier than the bottom rates from smaller financial institutions.

The large banks never supply the cheapest interest rates on the market. However, Canadians aren’t researching mortgage products and mortgage rates before they sign their mortgages, and that’s probably a very costly mistake. It costs the mortgage borrowers thousands of dollars every year.

Canadians are accustomed searching around for things like TV’s or vacations and finding the least costly vacation or Tv; however, typically the mortgage borrowers fail to understand that a similar strategy might mean massive savings on their mortgage.

 

How much could the mortgage borrowers save?
As a typical example,  a major bank posted its 5-year rate to 5.59%; mortgage borrowers would pay $1,979.00 per month on that rate based on a $400,000 mortgage (assuming a down payment of at least 20% percent to avoid CMHC insurance and a 25-year amortization)

However, the best interest rate with MortgagecentreSaskatoon.com effective Feb 13 is 3.54%, saving borrowers $366.00 per month (with a payment of $1,604.00) – or a staggering $87,840 over the lifetime of the mortgage.

Smaller financial institutions often drop their interest rates first to be more competitive, but the big banks are slower to implement the changes because they know they own a good majority of the market. This trend will only change once the mortgage borrowers begin to shift their mortgage to the smaller financial institution instead of doing business with their well known local branch.  This is when the consumer will actually start saving money.  Smaller financial institutions are only available through mortgage brokers, and their services are FREE.

Do you need help in finding the best mortgage rate? or best mortgage product?  We do business with smaller financial institutions to bring you an alternative solution and best mortgage rates. Our service is Free.  Contact one of our mortgage brokers, we’ll walk you every step of the way and explain the pros and cons of each lender and their rates.

The Mortgage Centre Saskatoon

Sky Financial Corporation

By |2019-02-13T16:03:32+00:00February 13th, 2019|Mortgage Tips|0 Comments

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