Mortgage Rate Ripoffs: Do Your Homework Before You Pick a Vendor

The web is littered with mortgage banks and brokers.  Most people however feel that they’re best off sticking with their local bank, the bank they’ve dealt with for years when it comes time to get a mortgage.

That, however might lead to you paying more than is necessary, and even getting scammed by your own bank on a grossly inflated interest rate.

Victoria mortgage rates expert Liz Prins dug up some interesting tidbits from the Bank of Canada lending industry report.  She found that the BoC comes right out and admits that people who don’t shop their mortgage rates around end up being charged far above fair rates by their big banks.

Her recommendations (featured on the Victoria Real Estate blog) are:

-Even if you can afford it, shop around for a better rate.

-Realize banks often charge younger customers lower rates anticipating that they’ll be better “long term” customers for the banks.

-Try going through a broker that represents multiple lenders to compare rates.

Thanks to Liz for the heads up and be careful out there!