Posted Mortgage Rate vs. Actual Mortgage Rate

Posted Mortgage Rate vs. Actual Mortgage Rate

Mortgage rates are a hot topic in the media and social circles. For over a year, what will happen to mortgage rates at each Bank of Canada announcement has left many mortgage holders and seekers questioning which option is best.

One often overlooked topic is the posted rate versus the actual rate and how an experienced mortgage broker can often get you the best rate and terms for your financial goals. Let’s break it down!

What is a Mortgage Rate?

A mortgage rate is the percentage of interest, based on a portion of the borrower’s principal mortgage amount, that will be paid to the lender based on a schedule of regular installments in addition to the original loan amount.

What is the Posted Rate:

The posted rate is the rate the banks and lenders publicly announce. It is often expected borrowers will negotiate a lower rate.

What is the Actual Rate:

The actual rate is the rate that the borrower can negotiate. Depending on the lender, this rate is often lower than the posted rate, potentially a full percentage point lower. At Gail Sylvester Mortgages, we look at several lending options to ensure the borrower’s interest rate and term are the best option.

3 ways to Secure the Best Rate:

#1 A healthy financial history. A favourable financial history includes a good credit score, lowering credit card and loan debt, a proven debt repayment track record, and stable income and employment. From the lender’s point of view, they assume the majority of the risk in a mortgage agreement; therefore, the more evident the borrower will make the payments, typically, the more they will be willing to negotiate.

#2 Consider all your options. Fixed and variable mortgages will have different rate options. Depending on your risk tolerance, it may be best to look at both options before deciding which way to go.

#3 Work with Gail Sylvester Mortgages! We have long standing relationships with lenders who offer solutions and options to our valued clients. Our experience will help you compare your options and negotiate the best actual rate. We’ll always ensure we build a plan for you to reach your mortgage and financial goals.

Book a time with us to discuss how we can help you at

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