What is a posted mortgage rate? Posted rates are usually rates offered by one of the Big 5 Banks in Canada. They are much higher than the best rates in Canada and no one usually takes them.
Posted rates have become a standard by which the banks “start” their negotiating. Using a posted rate rather than offering a client the best mortgage rates in Canada right from the start is like negotiating hard on an overpriced used car. By the time you are done you are exhausted but feel like you received a great deal on that car. Really, its all a smoke screen because when it comes to mortgages, you could have just walked into a broker's office and received the end result right from the start.
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Banks start high with their posted rates because they know that most consumers will not bother to negotiate hard and if they only have to drop the posted rate by 0.50% then they've still made a significant profit off of you. Doesn’t seem fair does it?
Using a bank and taking a posted rate is only further encouraging the breaches in client trust that make the big banks billions in profits each year. The posted mortgage rates are insults to their clients. Mortgage brokers don’t even attempt to offer posted rates to their clients, as we do not want to be associated with any business that uses deceptive business practices to trick their clients.
When searching for the best rates in Canada, make sure that you have viewed the posted mortgage rates, but never accept those as your final rate. Dealing with a mortgage broker in Canada will ensure that you absolutely will receive the best rates in Canada.