Most banks and lenders have posted mortgage rates that are advertised to the public. Banks will typically start the negotiation process with these rates. As of August 1st, ATB Financial became one of the first lenders to eliminate these rates and simply offer their best discounted rates to the public.
The inflated posted rates you see advertised by banks and lenders are rarely ever paid by clients. ATB has eliminated the guess work and will now advertise their best discounted rates on www.atb.com. No more feeling that maybe you just didn’t negotiate well enough or that you didn’t come armed with enough knowledge and numbers.
A major criticism of the big banks in Canada has been the inflated posted rates. In many cases these rates are used to calculate early pay out penalties and create a much larger penalty for the client. This move by ATB could push others to follow suit, although the big 5 banks in Canada rarely move fast in situations that could cost them money.
