Mortgage Sales Tactics They Don’t Want You To Know

Hi there, my name is Brent Richardson, Certified Financial Planner, Mortgage Broker, and founder of Altrua Financial, based in Kitchener and Cambridge. I wrote this article for you with one goal in mind: To arm you with the knowledge that will help you save the most possible on your Mortgage. I will do this by exposing 5 carefully guarded mortgage sales tactics that have been witnessed over 10 years in the mortgage industry. For each area, you will learn how to get the upper hand. Let’s get started!

Kitchener Mortgage - Mortgage Renewal Guide

 Sales Tactic #1: The ‘I’m Offering You a Rate Special’ Story

This Big Bank strategy works by quoting you a mortgage rate that is deemed ‘an excellent deal’, such as ‘Employee Pricing’ or an advertised rate special. But beware, Banks are usually not forthcoming about their absolute lowest rates – those rates go to those who dig a bit deeper.

Solution: If you want to negotiate with your Bank, you can try. Or talk to a Mortgage Broker specialist that offers you a lower rate up front, without all the haggling. But *WARNING* don’t go to just any Mortgage Broker because as we will see in the next Sales Tactic, different Mortgage Brokers will offer different rates.

Sales Tactic #2: The ‘I’ll Beat the Bank, and get You the Lowest Rate’ Lie

Almost every Mortgage Broker says that they will provide you the lowest rate, but this is seldom true.

Solution: Mortgage Brokers are typically paid a lender commission between 1% and 1.2% of the total mortgage amount, and this commission can be invested by the Broker into lowering just about any interest rate. If you want to save more, use a Mortgage Broker that is completely transparent and invests some of the lender commission into buying down your rate. Almost all Brokers deal with the same Banks and Lenders, so why pay more for the exact same mortgage from the exact same lender?


Sales Tactic #3: The ‘Collateral Charge’ Mortgage Trap

Put in simple terms –you can’t renew a Collateral Mortgage with a different Bank or Mortgage Lender at the end of the term. So if you try to shop around and find a better deal at your Mortgage renewal date – tough luck. You’ll have to renew at your Banks quoted rate or face some high costs to leave.

Solution: To avoid paying higher, anti-competitive rates on mortgage renewal, ensure you are in a Standard Charge Mortgage, NOT a Collateral Charge Mortgage.

Sales Tactic #4: The ‘Renew With Us Today!’ Scurry

Even for mortgages that are NOT Collateral Mortgages, lenders will still try and renew you at higher rates.

Solution: Ensure you use a Mortgage Broker that will proactively contact you and market shop your rate before the renewal date. At the very least, this will keep your existing lender honest, and can easily save you $10,000s over the life of your mortgage.

Sales Tactic #5: High Mortgage Penalties’ – They really do suck…

Over 50% of Canadian mortgage holders will make some sort of move or change to their mortgage, during the mortgage term. When these changes are made, Banks and Mortgage lenders can charge massive penalties, often in unexpected and creative ways.

Solution: Not all mortgages are alike. Some Banks and lenders are notorious for charging high penalties, while other lenders tend to charge low penalties.  Ensure you understand the mortgage penalty, relative to other mortgage options in the market.


This guide was written to arm you with the knowledge that will help you save more while Mortgage shopping, because at Altrua, we are confident that we can truly provide you with the lowest cost mortgage options and stress-free service. Haggle-free, transparent mortgage solutions are something Canadians are coming to expect.

Connect with Brent Richardson – Kitchener Waterloo and Cambridge Mortgage Broker today for any comments, questions or a no obligation pre-approval. – 519-568-3377