Posted rates vs. special mortgage rates vs. discretionary rates
All of Canada’s big banks advertise 3 types of rates:
Posted rates are non-discounted rates that are mostly used as a point of reference and for calculating prepayment penalties (the fees charged if you break your closed mortgage early). Well-qualified borrowers should never accept a posted rate and are rarely offered one, except perhaps on renewal when the bank hopes to catch borrowers napping.
Special mortgage rates are typically limited-time promos that the bank offers on select terms. They sometimes come with specific restrictions and are rarely market-leading.
Discretionary rates are the best mortgage rates that big banks can offer, but they’re only available to well-qualified borrowers. The big banks don’t publish discretionary rates. Instead, clients typically get quoted them by bank representatives following a negotiation process. The discretionary pricing available to individual borrowers can differ and is impacted by factors such as one’s credit-worthiness, history with the bank, assets and their negotiating ability.
