This has been my experience thus far. I spoke with a few banks and then asked a broker specifically for a few standard charge fixed term mortgages on investment properties. after providing all my financials, assets, liabilities and income details, I was offered rates that were comparable to bank rates that was offered to me by my own bank. It was just another bank with bank rates, penalties etc!
Even bank field Mortgage Specialists are commission driven too ie. No lending, no compensation so they are keen to lock you down. The lower the rate, the less commission from my understanding too
I was told because we have several properties, I had limited options as most lenders just want principle residence mortgages. I was pushed to Get a collateral mortgage Heloc with fixed term component and revolving portion with a bank to access max equity on our properties even though I didn't need nor want it.
What lenders offer investment property mortgages?
How many doors will they allow owners to have?
What is a good secured Heloc rate now pls? Is prime plus 0.25 still available?
PaulMeredith wrote: ↑Feb 15th, 2016 9:14 amI didn't mention compensation as a con to brokers conciously as this also happens with banks. They will often give their staff an incentive for pushing one product over another if that product is more profitable for them. This happened a lot on both sides a few years ago when 10 year mortgages dipped below 4%. Both banks and brokers were heavily pushing it telling their clients that it's a great way to protect yourself against higher rates. Great way for them to pad their own wallet maybe. Myself as well as the other regular posting brokers on this board always strongly advised against 10 year mortgages. Another example is a bank pushing you to take a HELOC with your mortgage whether you need it or not. This turns your mortgage into a collateral mortgage regardless of lender making it harder for you to leave they bank. CIBC in particular loves to push their clients into cash back mortgages., which is highly profitable for them since their cash back mortgage is the harshest to break of all lenders including other banks.
A truly good broker will be happy I have your business and willl help you to choose the procduct that is right for you without much thought on comp. . Like I said before, there are good and bad on each side.