Welcome to Mortgage Rundown, a quick take on Canada’s home financing landscape from mortgage strategist Robert McLister.
Look online and you’ll see mortgage rates as low as 3.44 per cent for a five-year variable and 4.19 per cent for a five-year fixed.
Seems like a steal, right? Especially in a world where the best deals that our megabanks are advertising are 4.35 per cent to 5.17 per cent.
There’s just one problem. At least five out of six borrowers will never get a rate remotely near 3.44 per cent. They won’t qualify for it.
The rate mirage
Mortgage professionals know that rates like this are for well-qualified default-insured borrowers only. But your average Joe doesn’t.
Given the choice, mortgage providers wouldn’t advertise rates like 3.44 per cent. They don’t make enough money, relative to an average mortgage rate.
A select few do it for one simple reason. It’s good…
