Will Your Bank Give You The Best Mortgage?

Relying solely on your personal bank for a mortgage might not be the best strategy, even if you have a long-standing relationship with them. Here’s why it’s worth exploring other options:

Why Not Just Rely on Your Bank?

1. Limited Options:

- Banks often offer a range of mortgage products, but they might not provide the most competitive rates or terms available. By not shopping around, you might miss out on better deals from other lenders.

2. Potential for Better Offers:

- Even if your bank offers a good deal, there might be better offers elsewhere. Rates can vary by a quarter or half a percentage point, which might not seem significant but can save you thousands over the life of the loan.

3. Comfort vs. Value:

- While it's comfortable to work with a familiar institution, it’s important to prioritize finding the best financial terms. Trust and comfort are important, but they shouldn’t overshadow potential savings and better mortgage options.

4. Mortgage Transfer:

- Your bank might sell your mortgage to another lender within the first year. This means the relationship you thought you were building might not last throughout the life of the loan.

Steps to Find the Best Mortgage:

1. Check Major Banks:

- Look at offers from other major banks. Even though their rates might be similar, they could offer different incentives or terms that are more advantageous.

2. Explore Various Lenders:

- Don’t limit yourself to major banks. Smaller lending companies and online lenders can offer competitive rates and unique options. Checking a broad range of lenders increases your chances of finding a better deal.

3. Consider Business Ties:

- If you own a business, some lenders might offer better deals to attract your business, so be sure to ask about any special offers.

4. Evaluate All Options:

- Compare interest rates, terms, fees, and incentives from multiple lenders. This thorough evaluation is crucial for securing the best mortgage for your needs.

By exploring a variety of lenders and comparing their offers, you ensure that you’re not missing out on potentially better mortgage terms and savings.