… actually, I saved them A LOT more!!!
My clients, a married couple with really good jobs, wanted to purchase a $990,000 house with 10% down. When they went to their bank, they were offered the typical 5-year fixed, 25-year amortized mortgage at the typical rate offered at any Canadian bank.
From a friend, they got my number, and gave me a call.
I was able to get them the EXACT same mortgage at the EXACT same bank for a much lower rate.
After 25 years, if they had accepted what they were offered, they would have paid $976,032 in interest charges.
After 25 years, as my client, they would have paid $706,237 in interest charges, …. a saving of $269,795.
Plus, I spend the time to understand them, put their needs first, do all the negotiating, manage all the paperwork, and get them their best deal.
So, how did I save my clients $269,798?
First, banks, financial institutions, and various other kinds of lenders know I represent many mortgages, so they are motivated to give me their best rate. It’s kinda like going to Costco and buying in bulk vs. going into a convenience store and buying milk on the way home from work.
Second, when you go into the bank, you are a customer, not a client. I am a government-licensed professional with a duty of care under the law to act with integrity and good faith, disclose material facts and conflicts of interest, demonstrate professional competence, and protect my client’s confidential information. As a customer at a bank, the salespeople (who are not licensed professionals) put the bank’s needs before your needs. You are basically a mark. To make quota, salespeople are under pressure to sell you as much as they can for as much as they can. They know you don’t know much about mortgages or the mortgage market and they take advantage of that to charge you as much as possible because their job requires they make as much money for the bank as possible. When I represent you, they know I can get you a mortgage from other banks, credit unions, insurance companies, monoline lenders, mortgage investment corporations, private lenders, and more. They have to compete for my business, so I get an ‘insiders’ rate.
Wanna know a secret, I can sometimes go lower still because banks and financial institutions put on promotions to try to get more of my business and I can pass those savings on to my clients. Sometimes I can do cash backs, sometimes I can do buy downs, all on the same EXACT mortgage at the same EXACT financial institution because I’m a mortgage agent and I work hard for my clients and put their needs first.
Want an even bigger surprise? I can even get better rates for bank employees than they can get at their very own bank. Does that shock you? Just to add salt to the wound, if the bank they work at did give them a lower rate, it still wouldn’t be any good to the bank employee because the CRA would consider it a taxable benefit!
So did I save my clients $269,795? No, ended up saving them $316,564. HOW ????
As a mortgage agent, I have access to hundreds of mortgage products across many banks, financial institutions, and much more. Most people think you can only get a mortgage at a bank. I spend time with my clients to confidentially understand their situation and appreciate what their goals are financially and what they want for their lives. I educate them on opportunities and structured solutions they had no idea were possible. I leverage my buying power to get my clients their best deal. Then I negotiate with the best lender for them to get their best mortgage solution for the best price.
Unlike a bank that is just pushing that bank’s products, I moved my clients over to an insurance company (did you know insurance companies used to be the number one place Canadians got their mortgages from many years ago?) and I found them a mortgage product that was perfect for them at a much lower rate as this institution had a very different set of lending criteria that was just right for my clients.
So no, I didn’t end up saving my clients $269,795 by getting them the exact same mortgage at the exact same bank; I saved my clients $316,564 by moving their business to a different financial institution that was better for them.
As a mortgage agent, I transform lives, provide financial security, and empower you to live your best life.
I can help you too. It’s your money. It’s your life.
