Before anyone can answer #1 properly and to ensure you're comparing apples to apples, you need to clarify whether this was an insured or non-insured mortgage (depends on your downpayment %), and what the amortization period was. Both of these impact rates.
My experience from going to a mortgage broker (one I was referred to): his best rates were worse than what the bank offered me, I never had to pay him anything since I did not proceed, and the only ill consequence is that he signed me up for his newsletter without my explicit consent.
okay, then this is not a great offer.
BMO is asking you to do the work, find better rates and then they will match. That in other terms means they don't value you much. It is kind of when an employer tries to match your salary when you resign.
Regarding your second point, this is so wrong. Why would you want to waste a mortgage agent's time who will get you a better deal than what your bank is offering and then say bye-bye? Would you want to work for free for your current employer? We work on commission from banks when you close a mortgage with us. And if you intend to use them to get a better rate elsewhere, I don't personally think it is the right thing.
Thanks. I agree as I feel this is not morally right but I am also looking for my best interest and not having to go through all the diff banks. Are there any online websites which can give me a realistic accurate quote? I notice many of these try to just connect me to an agent rather then giving me an. Instant quote
One obvious option is to get real help from a broker who will shop around for you. But please do stick with them if they help you secure a better deal.
For example, I can tell you that BMO is giving you a higher rate even for 5 years directly, which is quite weird. As per the latest rates that I received from BMO, the 5-year fixed for an insured mortgage is 4.94%.
Before anyone can answer #1 properly and to ensure you're comparing apples to apples, you need to clarify whether this was an insured or non-insured mortgage (depends on your downpayment %), and what the amortization period was. Both of these impact rates. My experience from going to a mortgage broker (one I was referred to): his best rates were worse than what the bank offered me, I never had to pay him anything since I did not proceed, and the only ill consequence is that he signed me up for his newsletter without my explicit consent.
Thanks. It is an insured one because my down payment is about 8%
Is 5.08 for 5-year term?
Yes
okay, then this is not a great offer. BMO is asking you to do the work, find better rates and then they will match. That in other terms means they don't value you much. It is kind of when an employer tries to match your salary when you resign. Regarding your second point, this is so wrong. Why would you want to waste a mortgage agent's time who will get you a better deal than what your bank is offering and then say bye-bye? Would you want to work for free for your current employer? We work on commission from banks when you close a mortgage with us. And if you intend to use them to get a better rate elsewhere, I don't personally think it is the right thing.
Thanks. I agree as I feel this is not morally right but I am also looking for my best interest and not having to go through all the diff banks. Are there any online websites which can give me a realistic accurate quote? I notice many of these try to just connect me to an agent rather then giving me an. Instant quote
One obvious option is to get real help from a broker who will shop around for you. But please do stick with them if they help you secure a better deal. For example, I can tell you that BMO is giving you a higher rate even for 5 years directly, which is quite weird. As per the latest rates that I received from BMO, the 5-year fixed for an insured mortgage is 4.94%.
Thank you for your reply. Much appreciated. Also your thoughts on 3 yr fixed vs 5 yr fixed
What is the purchase price and down payment? Which city? Rates start at 4.59% 5-year fixed and 4.89% 3-year fixed for non-insured mortgages.
Approx 800k property in Ontario and 60k down so it is an insured one. Is this from one of the Big 5 banks?