We Have PC Financial Mortgages, but Suggest Secondary Lenders
Your Mortgage Centre mortgage brokers at HCC Mortgages LTD. can offer you all PC Financial mortgage products that your local kiosk, online at PCFinancial.ca, or even on rate comparison sites such as Rate Supermarket and Rate Hub, but have other Ontario mortgage lenders offering even better rates with all the same service. Your Mortgage Centre specialists are your only option allowing you to compare a Presidents Choice Financial mortgage product with mortgage products offered by other lenders at lower rates. Best of all, your Ontario Mortgage Centre will offer you unbiased advice while you compare products since we work for you, not the lender.
How Can Mortgage Centre Offer Mortgage Rates Lower Than PC Financial?
If you read my recent post Lower Rate CIBC Mortgages at Mortgage Centre, you know that CIBC is affiliated with The Mortgage Centre and offers us discounted mortgage rates to compete with the more competitive secondary lenders in Ontario. Since PC Financial and CIBC are also affiliated, Presidents Choice Financial mortgages offer rates which are slightly lower than the same CIBC mortgage rates that The Mortgage Centre can offer. One might wonder why CIBC or PC Financial would offer mortgage brokers access to lower rates than their own employees, but the answer is a 5-letter word which all corporations strive to make, save, and invest – MONEY!
Why Are Presidents Choice Financial Mortgage Rates Lower Than CIBC?
Many Canadians are aware that PC Financial has an affiliation with CIBC since PC Financial banking clients can withdraw money at any CIBC teller free of charge. If they are affiliated, then why are PC Mortgage rates lower than that of CIBC? You could also ask yourself why Koodo cell phone rates are seemingly cheaper than Telus (Telus owns Koodo). As mentioned in my post about lower CIBC mortgage rates, CIBC and other big financial institutions are on the hook to pay huge expenses each year. Buildings, employees, and advertising are huge overhead costs which must be paid for in some way. A typical CIBC branch is an office building with a significant amount of square-footage and employees, costing a great deal to operate each year. A PC Financial Kiosk, on the other hand, is relatively small and located inside Loblaws, Great Canadian Superstore, or Zehrs grocery store with only 1-2 employees. This is why CIBC mortgage rates, even the lower rates offered by Mortgage Centre will always be slightly higher than PC Financial Rates. While the low overhead costs allows Presidents Choice Financial to offer more attractive interest rates than the big banks, they still must pass the overhead costs onto the customer. This can be done through service fees or other banking charges, but in the mortgage industry, it is hidden in the interest rate.
Does a PC Financial Mortgage Offer the Lowest Mortgage Rates in Ontario?
While a PC Financial mortgage offers a much lower interest rate than the posted rate at CIBC or any other big bank in Canada, your Ontario mortgage broker can usually find a secondary lender with even lower rates than PC Financial. This is because a secondary lender specializes in mortgages and has none of the overhead costs that a big bank like CIBC or even a small bank like PC Financial must pass onto the borrower through a higher interest rate.
Compare PC Financial Mortgage Rates With Mortgage Centre Best Rates
| Fixed Term |
PC Financial Lowest Rate |
Mortgage Centre Lowest Rate |
Savings Per Term on $250,000 |
| 1 Year | 3.14% | 2.49% | $2,197.26 |
| 2 Year | 3.10% | 2.59% | $3,399.98 |
| 3 Year | 3.14% | 2.89% | $2,456.62 |
| 4 Year | 3.20% | 2.99% | $2,709.72 |
| 5 Year | 3.24% | 3.04% | $3,175.38 |
Assumptions are that the mortgage amount is $250,000 and is amortized over 25 years.
PC Financial rates are taken from their lowest rate mortgage product called “Basic,” and allows only 10% lump sum payments a year with no increase in monthly payment amount. Most of these Mortgage Centre rates are taken from our mortgage products offering more flexibility with 20% lump sum payments a year with 20% increases in monthly payments.
Interest rates were effective on the date this post was written, Saturday August 25th, 2012 and are subject to change.
Get up-to-date Presidents Choice Financial Posted Mortgage Rates here.
Save Money With a Secondary Lender or Allow Us to Arrange Your PC Financial Mortgage
From the mortgage rate comparison chart above, you can clearly see there are some huge financial benefits to arranging your mortgage with a secondary lender. However, if you still feel that you would like to go with a lender you’ve heard of, we can arrange your home financing with any PC Financial mortgage product offering you more expertise than can be received speaking with a PC Financial banking representative. While a PC Financial banker wears the hat of everyday banking client care, customer service, financial advisor and mortgage representative, while a Mortgage Centre Consultant focuses on one product – mortgages. We know our industry inside-out and will help you with your questions and ensure all details are taken care of.
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