• Online Mortgage Rates May Not be Right for Me

    Mortgage clients in Canada are very fortunate to have amazing choices such as visiting their own banks and credit unions, visiting a professional mortgage broker or going online to handle a mortgage. For this comparison, we wanted to compare visiting an experienced mortgage broker versus looking for online mortgage rates. We will view the great benefits of online shopping and the limitations. It will be a balanced report seeking the true answers to value and expertise you could expect in today’s market world.

    It is safe to say Amazon has basically perfected technology and has provided excellent prices, great service and great products. The future will be run by computers and that is the safest prediction I can ever make. This is a reality, including the Canadian Mortgage Market. However, as of now, the online rate service provided by companies such as ratehub.ca, Butler Mortgage or ratesupermarket have many gaping holes in their service model.

    Let’s examine the online mortgage service from their advantages. They do provide some great concepts that will only evolve with time and catch up to the service levels of companies such as Amazon and Canadian mortgage needs.

    Some of the wonderful ideas are:

    • It is the way of the future
    • With less overhead and technological breakthroughs savings can be passed on to consumers
    • Excellent starting point to compare rates
    • For the educated consumer, it is a great time saver
    • Menu of lower rates to compare
    • For specific mortgage products, offer great value
    • It is exactly how the young generation shop for a mortgage
    • Easier to stay connected, some may have real time client chats
    • Less hassle, do not need to visit anyone
    • You don’t mind doing your paperwork

    Let’s now examine what a typical week at our mortgage office looks like. The phone rings and a conversation begins something like this “I just checked out the online rates and I wonder if you can quote me your rate”. So now the flaws of online rates begin to surface. It is this time I must ask questions to help serve the client’s true needs. Questions such as ‘is this a purchase or refinance’, ‘if a purchase, is it high ratio or conventional?’. The client usually answers by asking what the difference is between the two. Needless to say, as an industry, we are providing a disservice when we do not hand hold the client and fit them in the right mortgage category.

    Online mortgage rates are in the future but as of now, there are many disadvantages:

    • Usually advertise only the lowest high ratio rates, which is misleading
    • Some of the lowest rates has specific mortgage restrictions
    • Tremendous lack of detail in mortgage products
    • Many low rates have strict conditions in terms of acceptance for the mortgage and large penalties
    • Does not include products with flawed credit
    • Geared to the easiest types of approval (in which anyone can do)
    • Does not include self-employed rates
    • Does the rate include rural properties which lenders may not care for
    • Lack of guidance or help from the online lender

    Online mortgage rates are certainly the way of the future, but in the present day, they are not the total package our Canadian consumers are seeking. Based on our experience, we are spending our time graciously explaining the difference in rates in product. I may be very slanted in my opinion, but having a total mortgage broker system in education, guiding and getting incredible rates is far superior. Let’s be incredibly blunt, low rates are great but not at the expense of valuable experts, mortgage restrictions, refinancing restrictions or penalties that the general public just doesn’t understand without guidance. These are just my own thoughts.

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

    If you would like to apply for a mortgage online, please follow this link.

    If you would like to see our Google reviews or leave one yourself, you can do so here.

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