Blog by Imran Ali

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Tiny lenders chop rates to grab mortgage customers

Rates have dropped and that means better deals on mortgages. The big banks have dropped discount rates to an average of 2.79% on a 5 year mortgage.
Meanwhile the smaller lenders are hungry for more business so they're cutting profits to compete on lower rates.

Mortgage Brokers are also taking cuts on commission to compete in the race to the lowest rate:

The rate war is even more intense among mortgage brokers, many of whom are shifting away from the traditional full service model that saw brokers spending hours working with clients to select the best mortgage and earning hefty commissions. 

For more info:

http://www.theglobeandmail.com/report-on-business/economy/housing/smaller-mortgage-lenders-sacrifice-profits-to-compete-with-big-six-banks/article23018446/