Myth ? Bargaining for Mortgage Rates

Theresa’s Soap Box | SMP Online

Quite often we’re asked are these rates the best rates you have?

A lot of people are under the impression that they can bargain for a better mortgage rate, but this is a myth!

So why are people under the impression that they can bargain for a better rate?

Chartered banks:

A lot of banks’ posted rates are quite high!  You might ask why these rates are so high?  Well this is just a starting point for banks, they are more flexible in the rates or discounts they are able to give out.

So if you have a better credit or income situation there are discounts or rates that they can give you that are lower than their posted rates.

Mortgage broker:

When you go to a mortgage broker the rates that they provide already have all the discounts built-in.  Essentially a mortgage broker has done all the bargaining for you so you have all the discounts on the rates that are available to you, so there’s no need to worry about bargain again to get more of a discount.

Mortgage brokers get discounts from the lenders directly, so to get those discounted rates you do need to fit into the lender’s requirements and in general be a good credit risk for them (have good credit and good income) to accept your application.

Sometimes when you have a very specific and unique mortgage situation you might have to shop around for a rate, but however if you are just looking for a regular mortgage and you’re a good credit risk go talk to a mortgage broker because they have all the discounted rates from all the different lenders already!

If you have any questions on refinancing, feel free to call us at 1-866-521-9557 or email at

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