Real estate experts say that shopping around for the best mortgage offer is crucial. According to mortgage strategist Robert McLister, "skipping rate comparisons is essentially writing your lender a thank-you cheque - to the tune of $1,431 per $300,000 borrowed, for every 10 basis points more you pay on a standard five-year term."
But shoppers should also know how to shop around. A mortgage broker can help, but make sure the broker references a wide range of rates and does not work with only a few lenders. Similarly, when you ask a lender that sells only its own-brand mortgages, you risk, as McLister says, acting like someone asking a chef if their restaurant is the best in town.
That leaves the internet as the best resource. But sources matter. Use reputable rate comparison sites like WOWA, Ratehub, or Financial Post's mortgage rates. You can also check forums, broker sites, social media, or try AI chatbots - a step only 16 per cent of mortgage shoppers take, according to the Canada Mortgage and Housing Corporation.
Remember, when you compare offers on rate sites, consult with brokers, or use AI chatbots, you see rates specific to a particular slice of the market. Some sources do not show all the best deals because not every lender pays them. Also, the best rate does not always mean the lowest borrowing cost. Other factors, such as restrictive contractual terms, penalties, and fees, also drive your borrowing expense.
"On top of all that, the lowest number on a screen isn't always the lowest figure a lender will quote. Haggling still works if you invest the effort," says McLister.