Mobile Agent To The Rescue

by Darrin DeRoches June 7 - 13, 2012

The bank rate held again today at 1 per cent. Sounds pretty much the same, no glitz or glam, just a safe banking system that is strong and keeping our lending rates low. The only reports on an increase in the rate is that in the near future a modest rate increase may happen and there is a 50 per cent chance that it will occur. Pretty wishy washy stuff. So it looks like low mortgage rates are here to stay.     This brings me to my experience of renewing one of my house mortgages. The bank contacted me about six months ago and offered a low one time rate to get me to renew with them and to avoid the possibility that I would shop around the mortgage. I figured that the rates would be the same so I left it until today to look into it. The bank sent me a second renewal where they asked me to check a box and send in the renewal and they now are offering me the posted rate, which is considerably higher than the one they offered six months ago. I made an appointment with the bank and sat with their “inside mortgage” agent who then offered me a rate lower than the posted rate but still not as competitive as other lenders. I told the agent that I deal with a lot of brokers and that I could “shop around” my mortgage and asked if she can do better? The answer was that she could send it to head office with an explanation that we would be willing to open new accounts and consider other products – if they would give us a better rate. She also justified the rate by saying it was so much lower than the rate we had 5 years ago – Really? No shit! Come on, that is the best pitch, it’s lower than the rate we have been milking you for over the last five years. I should be so grateful. Plus just fill out the paperwork and bring it back in – do all the work and we will just keep making money off of you.     So I left with the hope that the big man in Toronto will consider giving us the same rate that everyone else is offering in the open market. This bank has an “inside” mortgage agent, a “specialist” mortgage agent and a “mobile” agent. The funny thing is that they all can offer you different rates. Same bank, different employees, better rates. Sounds like I am making this up – but it is true. So I called a mobile agent that I have met before and asked her to look into the renewal and she guaranteed me that she can get the best rate, and she does. I did not want to go through the hassle of shopping around a mortgage and coming up with all new paperwork etc., but I still had to “shop it’ inside the same bank. Weird but true. The worst thing is that each bank does it differently, but the “mobile agent” tends to do all the work for you and will get you the best rate inside your own bank! V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.