What’s the lowest rate for a 5 year variable mortgage?

Things are not always what they seem.

Today, I received a call from a current client who is closing his mortgage this week and he had just seen a rate special from a leading bank…not mentioning name, but this bank identifies with green 😉

My client wanted to know why we had him approved at prime -.95% when he sees that this bank is offering prime -1.10%.

So let’s take a closer look  at what the offer is


Clients current rate:

prime – .95% = 2.75%

3.70% – .95% = 2.75%


Banks offer:

banks prime – 1.10% = 2.75%

3.85% – 1.10% = 2.75%


As you can  see the end rate is the same since this bank has a higher prime rate than the Bank of Canada’s prime rate.

If you don’t look at it closely, you would think that you are getting a better deal. This is another reason, why you need a mortgage broker working for you. 


This week I heard the best explanation for using a mortgage broker….for example let’s compare getting a mortgage to getting a new car.

If you walk into a Ford dealership and ask them for the best car, they are going to tell you it’s a Ford “fill in the blank”. Then if you then go to the Dodge dealership, and ask them the same question they are going to tell you the best car is a Dodge “fill in the blank”.

The point is they will each tell you that the best car is the one on their lot and a product that they sell. They are not going to send you to another dealership to get ‘the best car’. They want your business and will do what they can to ensure that you buy ‘their best product’.

That’s what its like when you shop at a bank that only has their own products to present you with. You need to work with a mortgage broker that has access to numerous lenders and products, and can give you a true bias opinion of your best options.

Please share this with friends, family and co-workers, help them find the best mortgage possible to suit their needs.

We are here to help, contact us at 905.870-0513 or ana@citymortgagegroup.com




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