A posted rate is a published number. A quoted rate is an offer for your file. The gap between the two is not a trick; it is how mortgage pricing works, and it is the reason comparing across lenders is worth the effort.
Why the numbers differ
- A mortgage sourced through an agent draws on a wide network of lenders, including credit unions and non-bank lenders, not just the big banks.
- Matching you to the right lender for your situation and mortgage type is often what produces a sharper rate, not a special relationship with any one bank.
- Posted bank rates are designed as starting points and rarely reflect the offers lenders actually approve.
- Rates for insured or variable mortgages can differ noticeably from posted rates, especially with solid credit and stable income.
- The structure of your mortgage, conventional or high-ratio, fixed or variable, directly affects what rates are available to you.
- Stress testing and qualification rules play a major role. Part of an agent's work is getting you to a rate you can actually be approved at.
- Banks tend to price for the average customer. An agent's job is to price your file.
Where to go from here
The only rate that matters is the one you qualify for, so start with a pre-approval and compare from there. Current rates are published on my Pineapple rates page, and if your term is ending, renewals explains why the first letter from your bank is an opening offer, not a final one.
This article is general information, not financial advice, and quotes no rates. Your situation may differ; speak with a licensed mortgage professional.