Loyalty doesn't pay when it comes to mortgage renewals
A Bank of Canada study found that loyal bank customers don’t get best deal when they renew mortgages. People who switch and first-time buyers do.
Purchasing a home is the biggest financial commitment most of us will ever make, so it makes sense to want to find the best possible deal. A recent study from the Bank of Canada revealed that staying loyal to a bank won't necessarily accomplish that goal.
It is a common misconception that having all your products and services with one bank will motivate them to provide you with a discounted rate when it comes time to apply for a mortgage, or renew an existing one. This Bank of Canada study shows that borrowers who switch lenders are far more likely to negotiate better rates.
Not surprisingly, findings also showed that borrowers who consult Mortgage Brokers are far more likely to get the lowest mortgage rates. Mortgage Brokers work with several different lenders and are able to shop around for their clients, typically with no fees.