August 7th, 2008 – Today, RateSupermarket.ca, (www.RateSupermarket.ca), announced the results of its latest survey which revealed that mortgage shoppers remain loyal to their own banks over other funding options such as Canadian mortgage brokers, trusts and credit unions.
The website asked visitors where they obtained their last mortgage from and almost half of respondents said their own bank, while 25% used a mortgage broker. The fact that only 7% went to a competing bank further confirms Canadian’s loyalty to their own financial institution.
The big banks are doing a fantastic job to gain this level of trust from their customers, however, does this mean shoppers are getting the best deal on their mortgage?
Discounted rates offered by specialty lenders and mortgage brokers can be up to 1.5 – 2.0% lower than the bank’s posted rates, which can result in thousands of dollars of savings over the life of a mortgage.
RateSupermarket.ca founder, Kelvin Mangaroo, comments, ”Canadians have traditionally used their existing banks for most of their major financial transactions due to good relationships with their local manager and to simplify their lives by dealing with only one organization. However, with the average Canadian receiving less than 2 quotes on their mortgage, many home owners are spending more than they need to.”
“RateSupermarket.ca offers a single place to easily compare mortgage rates, helping Canadians to make informed decisions and save money on their mortgages.”
Where did you get your last mortgage from?
- Your own bank: 43%
- Mortgage broker: 26%
- Credit union or trust company: 15%
- Other: 9%
- Another bank: 7%
* CAAMP survey Feb ’07: Canadians received 1.94 mortgage quotes on average