Would you trade in-person mortgage advice for a fully online mortgage and a cheaper rate?
If you answered ‘yes,’ you aren’t alone.
According to a recent study by Rates.ca, 72 per cent of Canadians said they would prioritize a cheaper mortgage rate over advice.
“Just as we saw with online stock brokerages a few decades ago, a growing segment of borrowers is willing to make their own mortgage decisions online without a banker’s advice,” Rob McLister, Mortgage Editor at Rates.ca., said in a news release.
Additionally, the results found most Canadians aren’t concerned with the brand of the lender; more than three quarters—77 per cent—said the mortgage lender’s brand wasn’t important to them.
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Further, 75 per cent of respondents said a low rate was an important factor in their choice of mortgage, and 47 per cent said it was the most important factor.
As well, only 19 per cent said the lowest overall borrowing cost is their main goal, followed by 14 per cent citing clear communication of mortgage terms and conditions.
“The lowest total borrowing cost, which includes interest, fees and penalties, always matters more than the lowest rate,” McLister said.
“But people continue to mistakenly associate the lowest rate with the greatest savings,” he added.