The impact is already evident. Since the takeover, the lowest nationally advertised variable mortgage rates have increased. Mortgage brokers are now leading the way with more competitive rates than advertised by major banks.
“For now, mortgage brokers are leading the way, led by price-slashers such as Butler Mortgage, Citadel Mortgage, True North, Ratehub and Nesto,” McLister noted. “While the lowest advertised bank rate is 6.69% for an uninsured variable, Butler advertises effective rates as low as 6.10%, including a cash rebate. The rate is higher if the mortgage is less than $650,000 or the closing is more than 45 days away, but it’s still considerably less than the offers advertised by banks.”
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While brokers offer competitive rates, some borrowers may still benefit from the broader services offered by traditional banks. Toronto-Dominion, currently eager to grow its mortgage portfolio, is reportedly offering substantial discounts.
“All the big banks have hidden “discretionary” deals, but HSBC was a different beast,” McLister explains. “Its rates were transparent, meaning HSBC borrowers didn’t have to guess or negotiate.”
