Real Estate

Butler Mortgage VS Banks

  • Last Updated:
  • Jul 8th, 2020 10:21 pm
[OP]
Deal Addict
Dec 20, 2015
3711 posts
1980 upvotes
Toronto, ON

Butler Mortgage VS Banks

Has anyone used Butler mortgage for their house? I see that they offer 1.89% on 5-year fixed and 1.69% on variable, as bank was offering 2.5% on fixed and 2.69% on variable for 5 years.

From my understand they are a brokerage firm, so they deal with close to 350 other institutions. How is their customer service and their dealings?
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11 replies
Deal Addict
Nov 13, 2013
2912 posts
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Ottawa
lamboman wrote: Has anyone used Butler mortgage for their house? I see that they offer 1.89% on 5-year fixed and 1.69% on variable, as bank was offering 2.5% on fixed and 2.69% on variable for 5 years.

From my understand they are a brokerage firm, so they deal with close to 350 other institutions. How is their customer service and their dealings?
Check out the mortgage thread. Many have similarly low rates. What kind of customer service do you imagine is worth up to a full point higher interest rate?
Deal Guru
Feb 9, 2009
11744 posts
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Go with the best rate...period!
Sr. Member
Nov 6, 2015
986 posts
588 upvotes
Guelph, ON
Who chooses their mortgage lender based on "customer service"? It's not like you will be talking to them every week. In almost all cases your interaction with them will be negotiating the mortgage, signing it, years of no communication (just making your payments), and they offer to renewal (probably), which starts the cycle over again.

Go with whoever offers you the best deal.
Deal Fanatic
User avatar
Feb 2, 2014
9517 posts
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Toronto
lamboman wrote: Has anyone used Butler mortgage for their house? I see that they offer 1.89% on 5-year fixed and 1.69% on variable, as bank was offering 2.5% on fixed and 2.69% on variable for 5 years.

From my understand they are a brokerage firm, so they deal with close to 350 other institutions. How is their customer service and their dealings?
Keep in mind, the 1.89% 5-year fixed is for insured purchases only.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Expert
Feb 29, 2008
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Tarrana
1.83%.....for a 5 year fixed.....my goodness I want to buy another home just to get that rate. We're still qualifying people (stress test) at what? close to 5%? Face With Tears Of Joy
Deal Addict
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Nov 5, 2018
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Toronto
And bears wonder why RE is going up?
Called the bottom.
Member
Jul 19, 2018
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Mississauga
lamboman wrote: Has anyone used Butler mortgage for their house? I see that they offer 1.89% on 5-year fixed and 1.69% on variable, as bank was offering 2.5% on fixed and 2.69% on variable for 5 years.

From my understand they are a brokerage firm, so they deal with close to 350 other institutions. How is their customer service and their dealings?
Compare the T&C's as well just in case if you go for a fixed rate how much will it cost to break the mortgage if you decide to upgrade in a couple of years. If you plan on living in the house for a long time then yes it would make sense to go with a 5 year fixed with the lowest possible rate.
[OP]
Deal Addict
Dec 20, 2015
3711 posts
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Toronto, ON
JayLove06 wrote: 1.83%.....for a 5 year fixed.....my goodness I want to buy another home just to get that rate. We're still qualifying people (stress test) at what? close to 5%? Face With Tears Of Joy
By stress test are you referring too APR rate? If so, looks like Butler is doing it at 1.89% APR. Please correct me if I'm totally wrong lol

This mortgage is not for me but for my cousin. I got my mortgage done at BMO for 2.3% at 5 years fixed and have about 1 year left before renewal, might consider this as well for my renewal.
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Deal Expert
Feb 29, 2008
15678 posts
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Tarrana
lamboman wrote: By stress test are you referring too APR rate? If so, looks like Butler is doing it at 1.89% APR. Please correct me if I'm totally wrong lol

This mortgage is not for me but for my cousin. I got my mortgage done at BMO for 2.3% at 5 years fixed and have about 1 year left before renewal, might consider this as well for my renewal.
You have to qualify at the higher of the BOC qualifying rate or the contract rate +2%. I think BOC rate is 4.89% so you have to qualify at that....which is asinine when the bank rate is 1.89%.
Jr. Member
Sep 10, 2013
176 posts
131 upvotes
Toronto
Any news on what their prepayment penalties are like? Standard 3 months interest/IRD?

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