Black Friday Mortgage Deals and Rates (Is it a Thing?)
November 17, 2021 | Posted by:
With the Holiday season fast approaching people all over Canada are scouring the web for amazing deals that will be released this November 26 of 2021. Black Friday is indeed a shopper's dream, but others out there have a more important purchase in mind - a new home. While you may have seen them advertised over the years, do banks and lenders actually have legitimate Black Friday mortgage deals and rates? Or do they just use the day to promote something that already exists, causing you to delay or ramp up a pre-approval? Let's find out.
What Home Buyers and Investors Need to Know About Waiting to Score Black Friday Specials on Mortgage Rates
Banks Will Market 'Door Crashing' Rates, But Does It Matter?
Banks and other lenders will most certainly promote variable and fixed mortgage rates for Black Friday. However, it's not like they have a ton of wiggle room when it comes to your cost of borrowing. Rates are a reaction to the economic state of affairs in Canada. Seeing as the Bank of Canada is holding their prime rate steady at .25% for the remainder of 2021, variable rates will remain near historic lows. Expect to see lenders advertise rock-bottom variable rates leading up to Black Friday. They will likely advertise specials in the 1.5 to 1.6% range. What about fixed rates? In the November BoC announcement, the Canadian public was informed that the quantitive easing program would come to and end, which means fixed rates could tick upwards. BMO, CIBC, RBC, Scotia Bank, and TD may drop their current 5-year fixed rate specials (which hover around 2.62%) ever so slightly down towards the 2.45 to 2.55% mark before increasing them in December.
Look, any percentage you save is great, and could equate thousands of dollars in savings over the life of your mortgage. For most, the difference between locking into a mortgage on Black Friday or the day before/after will be negligible. What won't be negligible, are the rates and preferred terms that you will receive by going straight to a professional mortgage broker. Brokers don't wait until Black Friday to get access to lower and unadvertised rates. Due to longstanding relationships with banks and lenders, brokers are able to pass bulk discounts on to their clients. Simply put, there's no need to wait for November 26/2021 to get pre-approved on a deal of a lifetime. Contact Ron Chan at 204.290.9950 to score those door-crashing mortgage rates when you are ready, especially if that day is today.
Lenders Will Probably Offer Other Concessions
There is much more leniency in what banks and other lenders can offer on Black Friday when it comes to incentives beyond fixed and variable rate mortgages. For instance, it's common to see them promote $1000-3000 cash back offers (etc.) for those that lock-in to a mortgage agreement on Black Friday. The cash back value will be contingent upon how much your mortgage will be. An example of what this sort of offer will look like, is this:
Source: BMO
Some of these deals will already exist, but they won't be marketed until a few short days before Black Friday in order to stir up excitement and garner press. They best thing you can do is connect to a mortgage broker beforehand. Like with variable and fixed rates (above) a broker will already know what the deals are, or will be, and may be able to get you access to the offer before Black Friday. If the deals are indeed under lock and key for the big day, a broker will at least ensure that you're fist in line so that the offers don't get scooped up ahead of you. Every day is Black Friday with the right broker! Contact Ron Chan today to score Black Friday mortgage deals and rates early, on the day of, or after.
'Every Day is Black Friday with the Right Mortgage Broker!'
