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If you're buying a home, especially in a competitive market like Toronto, every dollar counts. Yet, many buyers make the mistake of accepting the first mortgage offer they receive. What they don’t realize is that simply getting multiple quotes can lead to significant savings over the life of their loan. Whether you're a first-time buyer or already familiar with the process, comparing different mortgage options can give you the edge you need to make the best financial decision.

Let’s walk through why this matters, how to do it properly, and how working with experienced real estate professionals—like The Johnson Team—can simplify the journey.

Why You Should Get More Than One Quote

Mortgages aren’t one-size-fits-all. Each lender sets their own rates and fees, and even a small difference in the interest rate can add up to thousands of dollars over time. Getting multiple quotes allows you to compare not only interest rates but also other terms like loan duration, prepayment options, and closing costs.

In fact, research suggests that buyers who obtain at least three mortgage quotes save more money on average than those who accept the first offer. It’s like shopping for a car or a phone—you wouldn’t buy the first one you see without checking the competition.

Understanding Your Lender Options

The first step in getting multiple quotes is knowing where to look. There are several types of mortgage lenders in Canada:

Major Banks: These include familiar names like RBC, TD, and Scotiabank. They offer a full range of mortgage products and often have competitive rates, especially for clients with strong financial profiles.

Credit Unions: These member-based institutions sometimes offer better rates and more flexible conditions than traditional banks.

Mortgage Brokers: Brokers don’t lend money themselves but connect you with lenders that suit your needs. They can often access exclusive rates that aren’t available to the public.

Online Lenders: Increasingly popular, these digital platforms offer quick approvals and streamlined applications. They can be a great option if you're comfortable managing things online.

Each of these options has pros and cons, and comparing quotes from different sources gives you a well-rounded view of what’s possible.

Does Shopping Around Hurt Your Credit Score?

A common worry is that getting multiple mortgage quotes will damage your credit score. The good news is, it usually doesn’t—if you do it right. In Canada, credit bureaus group multiple mortgage-related inquiries within a short period (usually 14 to 45 days) as a single inquiry. This means you can get several quotes without multiple hits to your credit report.

When requesting quotes, try to stick to a 30-day window and clarify with the lender whether the inquiry will be a "soft pull" (which doesn’t impact your score) or a "hard pull." Most pre-approvals only require a soft check, which is safe and won’t affect your rating.

What to Look For in a Mortgage Quote

Not all quotes are created equal. When comparing offers, you’ll want to look at more than just the interest rate. Here are key details to review:

• Annual Percentage Rate (APR): This reflects the true cost of the loan, including interest and lender fees.
  
  

• Term Length: Most buyers choose a 5-year term, but options vary.
  
  

• Amortization Period: Typically 25 or 30 years. A longer period means lower monthly payments but more interest over time.
  
  

• Prepayment Options: Can you make extra payments without penalty?
  
  

• Penalties: What happens if you break your mortgage early?
  
  

Having this information in hand helps you make an informed comparison, and prevents surprises down the road.

How to Negotiate for a Better Deal

Just because a lender gives you a rate doesn’t mean it’s final. Use the quotes you’ve gathered as leverage. If Lender A offers a lower rate than Lender B; bring that back to Lender B and see if they can beat or match it. Many lenders are willing to negotiate, especially if they know you’re shopping around.

You can also ask about discount points or other incentives that may reduce your rate. Be polite but firm. Let them know you’re serious and informed—it can go a long way.

When to Get Your Quotes

Timing matters. Ideally, you should begin getting quotes after you’ve determined your budget and saved for a down payment, but before you start seriously looking at homes. That way, you’ll be ready to act quickly if you find the right place.

Quotes are typically valid for 90 to 120 days, so getting pre-approved early gives you a window of time to shop confidently.

Real-World Example

Let’s say you’re borrowing $600,000. If Lender A offers a rate of 5.20% and Lender B offers 4.90%, that 0.30% difference could save you over $100 per month—or more than $6,000 over five years. Now imagine you get five quotes and find one even better. The time you spend comparing could pay off big.

The Takeaway

Mortgage rates vary, and so do lenders. Taking the time to get multiple mortgage quotes is one of the simplest ways to save money when buying a home. By understanding your options, asking the right questions, and comparing offers side-by-side, you can make a confident choice that benefits your long-term finances.

If you're ready to take the next step, The Johnson Team is here to help. We’re known for our market knowledge, hands-on service, and strong negotiation skills. Whether you’re buying or selling, we’ll make sure your needs come first every step of the way.

To start working with an agent right away, please contact us. Your perfect home—and the best mortgage to go with it—is closer than you think.