Lowest Rate Strategy
Built for Homeowners Seeking the Lowest Rate
Want the lowest mortgage rate possible?
We can help with that.
The lowest rate comes from qualifying
for a better category of financing.
No obligation • Takes 30 seconds
⚡ 20-Second Preview
Lowest Rate Strategy Example
Ontario • $340,000 Mortgage
Knowledge of lender guidelines helped qualify the property for A Lender financing, unlocking lower rates for the remainder of the mortgage.
Result
• Rate reduced from 6.49% to 5.44%
• ~$13,807 saved over the first 3 years
• ~$63,561 projected savings over 25 years
• $1,377 of client costs covered
🏦 Access To A Wide Range Of Lenders And Products
We have access to a network of up to 59+ lenders, including major banks, credit unions, monoline lenders, and alternative lenders.
Different lenders offer different rates, products, and qualification options.
The first step is identifying which lenders may be the best fit for your situation.
🏠 Lowest Rate Strategy Example
Ontario • $340,000 Mortgage
Objective
Find a way to qualify for A Lender financing, where lower rates and lower borrowing costs may be available for the life of the mortgage.
The Situation
Clients were purchasing a rural property intended for family use.
The property's agricultural zoning and prior commercial use initially limited financing options to B Lender financing.
• B Lender rate: 6.49%
• B Lender fee: ~1% (~$3,400)
The opportunity was qualifying the property for A Lender financing, which typically offers lower rates and avoids the ~1% lender fee often associated with B Lender financing.
The Challenge
Only a small number of A Lenders were willing to consider the property.
After reviewing lender guidelines, we identified several issues preventing the property from qualifying for A Lender financing.
⚙️ The Strategy
To satisfy A Lender requirements, the property needed to present as a residential home rather than a commercial property.
Before the appraisal:
• Commercial signage was removed
• The outbuilding was converted into a garage
• The property was prepared to present as a residential home
Once completed, the appraisal confirmed residential use and the property became eligible for A Lender financing.
The Financing Solution
• A Lender mortgage secured: 5.54%,
reduced to 5.44%
using an $892 Interest Rate Buydown
• ~1% lender fee avoided (~$3,400)
Costs Covered For The Client
• Appraisal: $485
• Interest Rate Buydown: $892
Total Costs Covered
$1,377
✅ Result
• Moved from B Lender to A Lender financing
• Rate reduced from 6.49% to 5.44%
• ~$10,407 interest saved over the first 3 years
• ~$3,400 lender fee eliminated
📈 The Long-Term Impact
The biggest savings came from qualifying for A Lender financing instead of remaining with a B Lender.
On the client's $340,000 mortgage:
• A Lender mortgage @ 5.44%
→ Total payments over 25 years: ~$619,041
• B Lender mortgage @ 6.49%
→ Total payments over 25 years: ~$682,602
Estimated Long-Term Savings
~$63,561
💡 The Interest Rate Buydown Strategy
Borrowers or brokers may choose to pay an upfront amount to reduce the mortgage rate through an Interest Rate Buydown.
Reward credits may be used toward an Interest Rate Buydown, helping lower the mortgage rate beyond the lender's best offer.
Most lenders will typically allow rates to be reduced by up to 0.20%.
💲 Example Rate Buydown Costs
The cost of an Interest Rate Buydown varies based on the mortgage amount, lender, and size of the rate reduction.
The following example uses:
• Mortgage Amount: $500,000
• Amortization: 25 Years
• Mortgage Rate: 5.00%
Approximate Buydown Costs
• 0.05% lower rate → ~$1,025
• 0.10% lower rate → ~$2,050
• 0.15% lower rate → ~$3,075
• 0.20% lower rate → ~$4,100
🧩 Putting It All Together
In the example above, the largest savings did not come from comparing mortgage rates.
They came from:
1. Understanding lender guidelines
2. Qualifying for a better category of financing
3. Securing the lowest rate available within that category
4. Using an Interest Rate Buydown to reduce the rate further
5. Applying reward credits to help cover costs
✅ Result
• ~ $63,561 projected long-term savings
• Rate reduced from 6.49% to 5.44%
including a 0.10% Interest Rate Buydown
• ~ $13,807 saved over the first 3 years
• $1,377 of client costs covered
🧠 How Does Your Mortgage Compare?
• Did your mortgage qualify for the best lending category available?
• Was an Interest Rate Buydown used to lower your rate beyond the lender's best offer?
• Did anyone help cover your closing costs?
💡 Use Reward Credits To Lower Your Mortgage Costs
Eligible homeowners may qualify for up to $1,300 in reward credits, which may be used toward closing costs, an Interest Rate Buydown, or a combination of both.
Some homeowners may also qualify to earn up to $300 in additional reward credits per funded referral.
Use credits to:
• Lower your mortgage rate
• Reduce closing costs
No obligation • Takes 30 seconds
🧠 Beyond The Lowest Rate
For some homeowners, securing a lower rate is only the first step.
The right mortgage structure, combined with ongoing cash flow and tax planning, can substantially reduce long-term interest costs while creating greater financial flexibility over time.
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Joel Laceda Mortgage Agent Level 2
BRX Mortgage Inc. FSRA #13463