Brokers are Key to Getting the Lowest Mortgage Rates, says RateSupermarket.ca

TORONTO, ONTARIO, MARCH 11, 2019: Applying for a mortgage? Whether you're buying your dream home or simply refinancing, you'll need to look at many lenders to find the best deal. But if you don't understand the role played by brokers, you may miss out on the lowest mortgage rates.

"Many consumers aren't fully aware of how the choice of broker can affect their mortgage. If you find a great broker, you could get a great deal," according to Janine White, Vice-President of Marketplaces at RateSupermarket.ca.

RateSupermarket.ca is regarded as Canada's reliable one-stop shop for the best rates on personal finance products. They have published a free consumer guide on understanding how Canadian mortgage brokers work and how they can say you money.

The majority of brokers won't charge a fee directly to the customer, except in very complicated cases. However, this doesn't mean that they're working for free. Lenders pay commission to the broker after the deal completes, either as a one-off fee or as a percentage of your payments.

Commission can impact the total cost of your mortgage. Commission rates vary, depending on what mortgage product you purchase and how much business that broker does with the lender. If your broker works with the lender a lot, they may be able to earn better rates. Those rates can mean lower payments.

Lenders also offer varying amounts of commission on products. If they want to get more people to sign up for a particular type of mortgage, they may offer a better rate of commission to incentivize brokers. But if the broker gets paid more to sell certain products, doesn't that mean that they might give you advice that benefits their pocket rather than yours?

"Most advisers are extremely diligent, and robust financial regulations exist to protect consumers from bad advice," says Janine White. "But everyone should check the market before agreeing to a loan. Look at all the rates available to you and make sure you're getting the best possible deal."

If you're thinking about borrowing in 2019, you should move quickly to find the right adviser. Prices don't stay still for long and market forecasters are predicting another two or three rate hikes in the coming year.

Launched in 2008, RateSupermarket.ca is Canada's one-stop shop for the best rates on personal finance products; offering over 11 million Canadians the best mortgage rates, credit cards, bank accounts and GIC rates. RateSupermarket.ca is a division of Kanetix Ltd.
RateSupermarket.ca is located at 360 Adelaide Street West, Suite 100, Toronto, ON, M5V 1R7.