Canadians on the lookout for lower rates

by Gerv Tacadena on 22 Jan 2020

When looking for a mortgage, Canadians are increasingly prioritising getting the lowest mortgage rate in the hopes of achieving the greatest savings, according to a study by Rates.ca.

Getting a low rate is a crucial factor when getting a mortgage for three in four Canadians, while almost half said it is their number-one mortgage goal.

Many Canadians mistakenly associate lowest rates with the biggest savings, said Rob McLister, mortgage editor at Rates.ca. According to the study, only 19% of Canadians said the lowest overall borrowing cost is their primary goal.

"The lowest total borrowing cost, which includes interest, fees and penalties, always matters more than the lowest rate," McLister said.

Canadians are also willing to sacrifice traditional mortgage advice for a lower rate.

Around 45% of Canadians would consider getting a mortgage without talking to people on the phone or in person if it meant getting a lower interest rate. For this group of people, the rate savings would have to be at least 0.05 to 0.2 percentage points. A 0.2-percentage point reduction in mortgage rates could save borrowers up to $195 annually per $100,000 worth of mortgage.

"Just as we saw with online stock brokerages a few decades ago, a growing segment of borrowers is willing to make their own mortgage decisions online without a banker's advice," McLister said.

Post a Comment

Most Trending News

Strategies to Predictably, Reliably Grow Your Real Estate Business
News

This 7-day free masters summit will provide you with all the tips and tricks you need to get started in real estate investing, how to expand your real estate portfolio, and much more.

Read More
June virtual conference promises to turn agents into millionaires
News

“The easiest way to prove to people you can help them is to just start helping them, no strings attached,” said Craig Proctor, the master realtor who revolutionized the team concept.

Read More
Lead Gen Masters Summit
News

Are you struggling to obtain new, qualified leads as a real estate professional? Merged Media is hosting an online conference on May 13th to discuss digital marketing tactics to grow your portfolio.

Read More