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best technique to shop for mortgages - without jepordizing your credit

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Jr. Member
Mar 16, 2006
188 posts
534 upvotes
Toronto

best technique to shop for mortgages - without jepordizing your credit

we're shopping around for mortgages right now, about to write up applications til we were told NOT to because each time your credit is checked, your beacon ratio goes down. i read up on the threads on credits and sure, that makes sense.

so how does one shop for mortgages then? right now i have 2 options

1. mortgage through my home bank that knows me well
2. a couple mortgage brokers that were recommended

i don't think either would give me solid rates until i make formal application (who wants to work for nothin, right?)

i read in the threads that if you apply all in the same day, your credit scores will not be effected that day of, because the bank/s will not know you are applying elsewhere. true?

(FYI - we will be getting variable open/closed based on projections that rates are going down.)
17 replies
Deal Addict
Dec 22, 2003
1068 posts
215 upvotes
Calgary
I'd go with a mortgage broker. They hit your credit once and then shop that information around to the lenders. It's in their best interest to get you the most possible, since they're making a comission on that amount. Less headache than trying to shop around yourself too.
Member
Nov 25, 2004
405 posts
39 upvotes
Definately go with a mortgage broker. Easiest part of buying our house. I did all the paper work via the phone & fax and met him the next day to sign the papers.

No sweat. I dont know why anyone bothers to beg for good rates from thier bank, only to have them beaten by the broker.

Andrew
Deal Addict
Jan 14, 2004
3471 posts
90 upvotes
I just went through the whole getting a mortgage process and what I did was find out that I will be approved from bank a. I then just went to all the known brokers and banks etc in the area and advised that I am already approved and just want their best rate. Everyone ended up being the same... In the end my final decision was 5.15% variable. (prime - 0.85%)

And yes it did end up being through a broker...
Deal Addict
User avatar
Oct 9, 2001
1454 posts
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Toronto
If you don't mind me asking...

Is that 5 years Variable Closed and with who did you get that?

Thanks :)
Deal Expert
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Jun 9, 2003
25310 posts
2536 upvotes
Markham, ON
the best way is to do this.

get a pre-appoval from any bank...know the rate you are getting and the amount pre-appoved.

Search or make a new thread and ask rfders to post the best rate they recieved recently.

Get a contact from the best rate...that's what I did...and got a mortgage from BMO.

(at that time back in Feb 6 yrs at 4.707%)...thanks to a fellow rfder!
Deal Addict
Feb 4, 2004
2813 posts
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Gaffer wrote: Definately go with a mortgage broker. Easiest part of buying our house. I did all the paper work via the phone & fax and met him the next day to sign the papers.

No sweat. I dont know why anyone bothers to beg for good rates from thier bank, only to have them beaten by the broker.

Andrew
You would really have to do some negotiating to get a better rate than a broker will get you. Not worth the trouble IMO.
Jr. Member
Mar 16, 2006
188 posts
534 upvotes
Toronto
thelefteyeguy wrote: the best way is to do this.

make a new thread and ask rfders to post the best rate they recieved recently.

Get a contact from the best rate...that's what I did...and got a mortgage from BMO.

(at that time back in Feb 6 yrs at 4.707%)...thanks to a fellow rfder!
that's a great rate and great advice!

thread for 3 or 5 year open /closed variable - http://www.redflagdeals.com/forums/show ... p?t=351105
Jr. Member
User avatar
Oct 1, 2006
100 posts
I got 4.20 on a fixed from BMO, October 2005! I am not complaining...I was planning on going with a variable!!
Deal Addict
Jan 14, 2004
3471 posts
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brockster wrote: If you don't mind me asking...

Is that 5 years Variable Closed and with who did you get that?

Thanks :)
Sorry for taking so long to reply...

Mortgage Intelligence (www.joeornato.com < - my specific location).

Variable Open I beleive (can lock in whenever I want).
Deal Expert
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Jun 14, 2003
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wookie wrote: Sorry for taking so long to reply...

Mortgage Intelligence (www.joeornato.com < - my specific location).

Variable Open I beleive (cant lock in whenever I want).
Can't or can? I assume it is can.
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Deal Addict
Jan 14, 2004
3471 posts
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gman wrote: Can't or can? I assume it is can.
it is can... sorry typo
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Dec 24, 2004
10708 posts
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doodling wrote: we're shopping around for mortgages right now, about to write up applications til we were told NOT to because each time your credit is checked, your beacon ratio goes down. i read up on the threads on credits and sure, that makes sense.

so how does one shop for mortgages then? right now i have 2 options

1. mortgage through my home bank that knows me well
2. a couple mortgage brokers that were recommended

i don't think either would give me solid rates until i make formal application (who wants to work for nothin, right?)

i read in the threads that if you apply all in the same day, your credit scores will not be effected that day of, because the bank/s will not know you are applying elsewhere. true?

(FYI - we will be getting variable open/closed based on projections that rates are going down.)


1. unless your credit is really filthy anyway, applying for half a dozen mortgages or credit cards in one month doesn't really make a difference. its all a WEIGHTED system. in plain english, inquiries make a score worse if its already 'bad'.

2. a banking officer will be able to see all of your inquiries and will know whether or not they are for mortgages, so you won't look bad, it will just look like you're shopping around.
Sr. Member
Mar 1, 2008
645 posts
31 upvotes
wookie wrote: I just went through the whole getting a mortgage process and what I did was find out that I will be approved from bank a. I then just went to all the known brokers and banks etc in the area and advised that I am already approved and just want their best rate. Everyone ended up being the same... In the end my final decision was 5.15% variable. (prime - 0.85%)

And yes it did end up being through a broker...
Wookie, can u pls let me know the details where you got this rate? Tia !
Banned
User avatar
Jul 16, 2003
10397 posts
1468 upvotes
Toronto
doodling wrote: ...we were told NOT to because each time your credit is checked, your beacon ratio goes down.

Incorrect.

According to Equifax only 10% of your credit is made up of new inquiries, and several inquiries made within a short time frame (30-45 days) for the same purposes count as ONE single hit, no matter if a bank or broker or lender is checking your credit.
Andre Oliveira - Mortgage Agent
Mortgage Intelligence - FSCO# 10428
Deal Addict
Jul 11, 2010
1294 posts
329 upvotes
Toronto
The credit bureaus now consider mortgage or automobile financing apps as 1 hit if done in a 2 to 3 week period. However each credit card application counts as 1 hit dropping your score by about 7 points for each inquiry.

OP. You mentioned that you are looking at a variable rate as you feel these rates will go down. Variable rates are determine by the Bank of Canada rate which has been at 1% for quite awhile. The new Bank of Canada govenor recently suggested that Canadians realize that this rate will increase in the future. Economists are divided on when this will occur. Many thought this year. There are no projections for it to decrease. That being said various lenders are now offering a variable at prime (3%) minus .45 to .55 which is making the variable quite attractive to lenders these days.
Doug Boswell
i
Deal Fanatic
Apr 16, 2007
8134 posts
3485 upvotes
Financial District B…
doodling wrote: we're shopping around for mortgages right now, about to write up applications til we were told NOT to because each time your credit is checked, your beacon ratio goes down. i read up on the threads on credits and sure, that makes sense.

so how does one shop for mortgages then? right now i have 2 options

i read in the threads that if you apply all in the same day, your credit scores will not be effected that day of, because the bank/s will not know you are applying elsewhere. true?
Mortgage code input at data entry reduces impact from multiple inquiries for same credit products. Some systems require manual input while others are coded into software
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Addict
Jan 14, 2004
3471 posts
90 upvotes
Survivor2008 wrote: Wookie, can u pls let me know the details where you got this rate? Tia !
this thread is from 7 years ago; i believe this particular rate was with first national; however it is just a dream now a days.

i myself am at 3.74% fixed which is nothing special.

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