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Can I negotiate mortgage rates and how to get the best rates - YouTube
Channel: Homebuyer's School
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In this video we look at can you negotiate
mortgage rates and how to do it.
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That's starting right now.
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Welcome to Homebuyer's School brought
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to you by Brookfield Residential.
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So today I'm joined by Mujtaba Syed,
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manager mobile mortgage specialist with
TD Canada Trust and today the question
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we're gonna answer is, can you actually
negotiate your mortgage rate?
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So Mo, when you're going into your lender
or the bank, could you actually say hey--
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can you actually negotiate that rate that
they're gonna give you?
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Yeah, great question Karl. Yes and no.
So technically when it comes into it,
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every bank, they technically
have a rate grid right,
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which is what they kind of base on their
rates on so they'll look at to see what's
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currently available and what's the lowest
that they're willing to go?
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So when you go in and then you want it
when you want to talk to your lender
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about your rates, definitely shop around to
see what the banks are offering.
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Most banks are going to be
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just one tenth between each other or if
there's a big discount happening from one
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lender it's definitely beneficial for you to
kind of shop around to competitors and
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then speak to your lender about time.
Say listen
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I know that you guys are offering a certain
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rates, but I know your competitor is
offering a much lower rate,
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what can we do about that? In most in
most instances and scenarios
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your bank should be able to match that
rate. It really just depends on their grid so
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definitely have that
conversation with them,
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and definitely shop around, and it's
definitely a benefit--
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beneficial thing for you to do is try to shop
around get the best rates and take it to
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your lender and give them the opportunity
to match or sometimes even beat that rate.
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Is there any other way besides
shopping around, comparing
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rates between different banks-- is there
any way other way to negotiate that?
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Yeah, absolutely. It just depends on your
relationship with your lender and your
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specialist. Have an open honest
discussion with them and say, "Listen
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I don't want to shop around, I really enjoy
working with you, we have a relationship
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here, what's the best absolute rate that
you can do for me in that scenario?"
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Let the lender get back to you and explain
to you that this is the absolute best that
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you can do and it's the rate that you're
comfortable and you're happy with, then
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you know, they've done your job.
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But if you feel like hey,
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it still doesn't seem right to you and you
feel like there's still more of a wiggle
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room, definitely have the conversation
with them and speak to them about it.
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It never hurts to ask.
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Does your ability to qualify for
a home for a certain amount--
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does that impact your ability to actually I
guess, negotiate that mortgage rate?
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Not really Karl.
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So when it comes down to like mortgage
rates that we don't really--
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like there's a big misconception out there
in the market that if you have a
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better credit, you might get better rates--
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technically credit and other scenarios
definitely help you qualify,
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but once you qualify, almost everyone is
subject to the exact same rates or have
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access to the exact same rates.
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So it's always-- and that's a great way for
us not to kind of penalize
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someone who's making some
mistakes in their life
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et cetera, but everyone has access to get
great rates once you're qualified.
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So have the discussion with your lender,
have that open honest conversation with
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them to say,
"I obviously want the best rate,
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what is it that you're willing to offer me?"
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--and see what we can do to make that
happen and then kind of go from there.
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And the last question is, how do you get
the best mortgage rate from your bank?
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In my opinion the best way to do it is
actually know your surroundings right.
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Kind of go to shop around, check rates,
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be what we call an informed consumer,
be an educated consumer and see
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what's available out there,
so when you go into a meeting you have
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enough knowledge to know what is being
--what is being offered to you and then
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you can have the discussion with them.
It's really hard to have a discussion
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without really knowing what's available in
the market. You could be thinking about
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it in your head that was from
five-- six months ago
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which is not available today. So kind of go
in, have the discussion with them and
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definitely shop around.
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Has the recent interest rate
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increases, has that
impact your ability to negotiate?
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Yes and no. Another great question
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So it's when rates do go up banks have
little leeway to see-- they can't usually go
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backwards in time to see what's available
and maybe their discounts are not that
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great. It's also based on just timing alone.
So once again shop around
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and have that discussion.
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It's more than just try to get the lowest
rate possible, but always to see what is
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also attached to that rate,. You might find
a really low rate on the internet
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but when you look into what's tied
in to that term or
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the agreement to get that rate, it might
not be beneficial for you. They might have
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less prepayment privileges, they might
have some exiting scenarios are not
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comfortable for yourself or something.
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So always look-- always when you're
comparing apples to apples right,
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so don't really compare rates just
because it's a number.
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See who's offering that number, where the
benefits, the terms are attached to that
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lender and their mortgage compared to
your lender and your mortgage,
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and then kind of decide for yourself
what's best. Sometimes it makes sense
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to be a slightly higher rate to get the
comfort and security of a bigger bank,
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to get that maybe a higher prepayment
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privilege it if you want to pay
it off sooner or if you feel like
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it's easier for me to exit or renew my mortgage or refinance my mortgage.
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You want to look at all those options.
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There's a lot to consider, not just a rate at
the end of the day.
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Perfect. And my question for you is,
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Did you negotiate your last mortgage rate?
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And if you have any additional tips, let us
know in the comment section below.
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Do you have anything else to add Mo?
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No, I think that's great.
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Perfect, and remember for all our videos
on mortgages, mortgage rates, mortgage
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approval, see it in the description below.
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Thank you very much for joining us
and we'll catch you next time.
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That's another edition of
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Homebuyer's School. Tune in next time
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for more expert tips and tricks and visit
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homebuyersschool.ca to bring you one
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