Big-Bank Mortgages Are Comfortable, Popular And The Worst Deal Around

James DeVuyst • February 13, 2019

Why do we stay with them? Complacency is a big reason. A lack of knowledge is another.

RBC. TD. BMO. Scotiabank. CIBC. National Bank of Canada.

The Big Six.

Whenever one of these major Canadian banks tweak their mortgage rates, it makes headlines. Like last month, when RBC dropped its five-year fixed-term mortgage rate by 0.15 percentage points (or 15 basis points) to 3.74 per cent. Every major news outlet in Canada picked it up.

But here’s the thing about the bank’s posted mortgage rates — they shouldn’t matter. The big banks never offer the lowest mortgage rates in the market and those are the ones you want to pay attention to.

Canadians pay attention to the big guys, however, because they’re either too comfortable to make a change or simply not aware they’re being taken for a ride. The banks have a 90-per-cent stranglehold on the Canadian mortgage market and we’ve been slow to start paying attention to the alternative — often cheaper — options out there.

See, there’s a whole industry of smaller, more competitive mortgage lenders and brokers who never make headlines. They’re often just as established, they’re absolutely just as reliable, and they’re significantly more affordable. So why do we stay with the big banks? Complacency is a big reason. A lack of knowledge is another.

In every unhealthy relationship, there comes a time to say “enough.” And unless you enjoy funding the mega-profitable Big Six, there’s no better time to say it than now.

Here are the two reasons you should ditch your big bank and try out the plethora of smaller lenders out there.

Brokers and smaller lenders often drop their rates first

In a nutshell, here’s how mortgage rates work: lenders (whether big banks or small lenders) lend money to homebuyers in the form of mortgages. Even big banks have to borrow money at times to ensure they can lend money out to meet demand, and they always borrow at a lower rate than they lend it out at. That’s how they make a profit.

Beginning this past fall, the rates that lenders were borrowing at began to fall. For example, in November 2018, a five-year government of Canada bond was costing lenders 2.5 per cent in interest — it’s now costing them around 1.75 per cent. That reflects the cost of lending in the bond market, which helps influence fixed-rate mortgages. But the big banks are only recently starting to pass these savings onto Canadian consumers.

Smaller lenders and brokers began lowering their mortgage rates ahead of the big banks in January — when they should have. But you didn’t hear about those rate change, because small lenders don’t make headlines.

Brokers and smaller lenders had lower rates to begin with

Even if we put aside the fact that the big banks were inexcusably late with the recent rate drop, it still doesn’t make sense to stay with them. That’s because smaller lenders and brokers consistently offer mortgage rates that are way better than those posted by the banks.

Case in point: RBC’s news-making five-year fixed rate of 3.74 per cent would mean a monthly payment of $2,560 on a $500,000 mortgage (assuming a down payment of at least 20 per cent to avoid CMHC insurance, and a 25-year amortization period).

If you took that same buying scenario ($500,000 mortgage, no CMHC insurance, 25-year amortization period) and mapped it onto the best currently available five-year fixed-rate available in the market — which happens to be 3.23 per cent, at time of publication — you’d be looking at monthly payments of $2,426.

That’s monthly savings of $134. Might not seem like much, but over the course of the 25-year mortgage? You’re looking at saving $40,200 by ditching your bank.

So here’s the headline that you should see, but you never will: Canadians are overpaying by staying with their big bank.

But we can all change that. Start by making sure that when you get a mortgage, you’re not just walking into the bank and taking the first rate they offer. Shop around and compare — hop online and see what competitors will offer you.

We all compare flights and hotels when we’re taking a trip overseas. We should start doing the same for financial products. After all, the money you can save on a vacation pales in comparison to what you can save on a mortgage.

Original Article Here

Please contact me anytime , I’d love to work with you, and answer any questions you might have.

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What Is a Cashback Mortgage and How Does It Work?

By James De Vuyst • March 5, 2026

Cashback Mortgages: Are They Worth It? Here’s What You Need to Know If you’ve been exploring mortgage options and come across the term cashback mortgage , you might be wondering what exactly it means—and whether it’s a smart move. Let’s break it down in simple terms. What Is a Cashback Mortgage? A cashback mortgage is just like a regular mortgage—but with one extra feature: you receive a lump sum of cash when the mortgage closes . This cash is typically: A fixed amount , or A percentage of the total mortgage , usually between 1% and 7% , depending on your mortgage term and lender. The money is tax-free and paid directly to you on closing day. What Can You Use the Cashback For? There are no restrictions on how you use the funds. Here are some common uses: Covering closing costs Buying new furniture Renovations or home upgrades Paying off high-interest debt Boosting your cashflow during a tight transition Whether it’s to help you settle in or catch up financially, cashback can offer a helpful buffer— but it comes at a cost . The True Cost of a Cashback Mortgage Here’s the part many people overlook: cashback mortgages come with higher interest rates than standard mortgages. Why? Because the lender is essentially advancing you a small loan upfront—and they’re going to make that money back (and then some) through your mortgage payments. So while the upfront cash feels like a bonus, you’ll pay more in interest over time to have that convenience. Breaking Down the Numbers It’s hard to give a blanket answer about how much more you’ll pay since it depends on: Your interest rate The cashback amount The mortgage term Your payment schedule This is why it’s important to run the numbers with a mortgage professional who can help you compare this option with others based on your personal financial situation. Are You Eligible for a Cashback Mortgage? Not everyone qualifies. Cashback mortgages generally come with stricter requirements . Lenders often want to see: Excellent credit history Strong, stable income Low debt-to-income ratio If your mortgage file includes anything “outside the box”—like being self-employed or recently changing jobs—qualifying for a cashback mortgage might be tough. What If You Need to Break the Mortgage? This is one of the biggest risks with cashback mortgages. If your circumstances change and you need to break your mortgage early, you could be on the hook for: Paying back some or all of the cashback you received, and A prepayment penalty (typically the interest rate differential or 3 months’ interest—whichever is higher) That can be a very expensive combination. So if there’s even a chance you might need to sell, refinance, or move before your term is up, a cashback mortgage might not be the best fit. Should You Consider a Cashback Mortgage? Maybe—but only with eyes wide open. Cashback mortgages can be helpful in the right scenario, but they’re not free money. They’re a lending tool that benefits the lender , and the key is knowing exactly what you’re agreeing to. Final Thoughts: Talk to an Expert First Choosing the right mortgage isn’t just about the lowest rate or the biggest perk—it’s about making a choice that fits your whole financial picture. If you’re considering a cashback mortgage, or just want to explore all your options, let’s talk. As an independent mortgage professional , I can help you weigh the pros and cons of various products, so you can make a confident, informed decision. Have questions? I’d be happy to help—reach out anytime.

Smart Steps to Get Your Home Market-Ready

By James De Vuyst • February 19, 2026

Thinking About Selling Your Home? Start With These 3 Key Questions Selling your home is a major move—emotionally, financially, and logistically. Whether you're upsizing, downsizing, relocating, or just ready for a change, there are a few essential questions you should have answers to before you list that "For Sale" sign. 1. How Will I Get My Home Sale-Ready? Before your property hits the market, you’ll want to make sure it puts its best foot forward. That starts with understanding its current market value—and ends with a plan to maximize its appeal. A real estate professional can walk you through what similar homes in your area have sold for and help tailor a prep plan that aligns with current market conditions. Here are some things you might want to consider: Decluttering and removing personal items Minor touch-ups or repairs Fresh paint inside (and maybe outside too) Updated lighting or fixtures Professional staging Landscaping or exterior cleanup High-quality photos and possibly a virtual tour These aren’t must-dos, but smart investments here can often translate to a higher sale price and faster sale. 2. What Will It Actually Cost to Sell? It’s easy to look at the selling price and subtract your mortgage balance—but the real math is more nuanced. Here's a breakdown of the typical costs involved in selling a home: Real estate agent commissions (plus GST/HST) Legal fees Mortgage discharge fees (and possibly a penalty) Utility and property tax adjustments Moving expenses and/or storage costs That mortgage penalty can be especially tricky—it can sometimes be thousands of dollars, depending on your lender and how much time is left in your term. Not sure what it might cost you? I can help you estimate it. 3. What’s My Plan After the Sale? Knowing your next step is just as important as selling your current home. If you're buying again, don’t assume you’ll automatically qualify for a new mortgage just because you’ve had one before. Lending rules change, and so might your financial situation. Before you sell, talk to a mortgage professional to find out what you’re pre-approved for and what options are available. If you're planning to rent or relocate temporarily, think about timelines, storage, and transition costs. Clarity and preparation go a long way. The best way to reduce stress and make confident decisions is to work with professionals you trust—and ask all the questions you need. If you’re thinking about selling and want help mapping out your next steps, I’d be happy to chat anytime. Let’s make a smart plan, together.

Mortgages Aren’t One-Size-Fits-All

By James De Vuyst • February 5, 2026

Why the Cheapest Mortgage Isn’t Always the Smartest Move Some things are fine to buy on the cheap. Generic cereal? Sure. Basic airline seat? No problem. A car with roll-down windows? If it gets you where you're going, great. But when it comes to choosing a mortgage? That’s not the time to cut corners. A “no-frills” mortgage might sound appealing with its rock-bottom interest rate, but what’s stripped away to get you that rate can end up costing you far more in the long run. These mortgages often come with severe limitations—restrictions that could hit your wallet hard if life throws you a curveball. Let’s break it down. A typical no-frills mortgage might offer a slightly lower interest rate—maybe 0.10% to 0.20% less. That could save you a few hundred dollars over a few years. But that small upfront saving comes at the cost of flexibility: Breaking your mortgage early? Expect a massive penalty. Want to make extra payments? Often not allowed—or severely restricted. Need to move and take your mortgage with you? Not likely. Thinking about refinancing? Good luck doing that without a financial hit. Most people don’t plan on breaking their mortgage early—but roughly two-thirds of Canadians do, often due to job changes, separations, relocations, or expanding families. That’s why flexibility matters. So why do lenders even offer no-frills mortgages? Because they know the stats. And they know many borrowers chase the lowest rate without asking what’s behind it. Some banks count on that. Their job is to maximize profits. Ours? To help you make an informed, strategic choice. As independent mortgage professionals, we work for you—not a single lender. That means we can compare multiple products from various financial institutions to find the one that actually suits your goals and protects your long-term financial health. Bottom line: Don’t let a shiny low rate distract you from what really matters. A mortgage should fit your life—not the other way around. Have questions? Want to look at your options? I’d be happy to help. Let’s chat.