Frequently Asked Questions
What does RateStreet do?
RateStreet gives you the tools, information, and guidance to find the perfect loan for you through our vast lender marketplace. We assist clients from the beginning of their loan search to ongoing post-funding advice on how to minimize interest costs, potential fees & penalties. We take care of everything from preparing the loan application, to negotiating with lenders, to ensuring that funding occurs on time, everytime.
Who can work with RateStreet?
No matter what stage you’re at in the purchasing or refinancing process, we are here to answer any questions and to help you start securing your best financing options. Our clients must be above the age of 18, and subject properties must be located in Canada.
Why shouldn't I get my mortgage from the bank I use for my chequing/savings?
When you go to a bank there are a few key points to consider:
1. Your mortgage options are limited to just the 3 or 4 products that that particular bank offers. RateStreet has a large lender network and we can offer you the 'real' lowest rates and best options available based on your unique situation.
2. Banks offer retail rates which are always much higher than the wholesale rates that RateStreet's lenders offer. While some banks may match our wholesale rates, the inflated discount from their retail posted rates remains part of your loan agreement and often results in large Interest Rate Differential (IRD) pre-payment penalties.
3. Bank branch employees are only required and trained to promote that one bank's loan products and will only present those products - even if it's not in your best interest. Our Mortgage Advisors are licensed and trained mortgage professionals that know all the current mortgage products and will give you a completely transparent and unbiased selection of all your best financing options.
How and how much does RateStreet get paid?
As a predominantly lender-paid mortgage originator, we prepare your loan application and required supporting documents in the most favourable way and format required by the best lenders that suit your unique situation. We then negotiate the best rate and terms, which typically requires using a portion of any commissions to buy-down your rate. In return for providing that service, the lenders pay us a percentage of the value of the loan.
On average we make .60 to .80% of the value of your loan. This fee may be higher or lower depending on the lender or loan program. By policy we use a large portion of commissions received for rate buy-downs and other cash-back offers to ensure that our clients always receive the absolute best rates.
Lender commissions are generally the same regardless of which lender brings your best financing option to the table. This amount is NOT added to your loan, and in practice is a more cost effective option of loan origination for lenders - compared with high cost brick & mortar (or branch) options. A true win-win situation. We also structure our Mortgage Advisors’ compensation to remove the commission bias that you may encounter working with most other banks and brokerages. A portion of our Mortgage Advisors compensation is directly linked to our client's experience and satisfaction, ensuring a high level of customer-first service is maintained everytime.
* Please note on rare occassions when limiting issues such as credit history, excessive loan-to-value ratios, lack of supporting documents, property type and/or location occur, this is referred to a 'B' or 'C' loan and may require a client paid commission, but ONLY with the borrowers' prior written approval. In these instances, we will advise clients of the specific limiting circumstances and attempt to quickly work beyond these issues to a loan solution that meets their needs. Our full spectrum of lending options for any situation is another reason to start your mortgage process with us, and not with a retail bank that has far fewer options available.
How does getting a mortgage with RateStreet work?
When you start your application with us, you’re immediately assigned a dedicated team of three professionals: a Mortgage Advisor, an Underwriter and a Loan Coordinator. Our team structure is designed to provide you with the best customer service possible and to keep your loan application on track from approval to funding.
Your Mortgage Advisor is your guide and main point of contact, working closely with you at every step. Your Mortgage Advisor will help you find the loan that best meets your goals and financial situation, and will fully explain all of your financing options so you can feel confident in your selections.
Your Underwriter is a loan processing expert, and the main interface between RateStreet and the lender. They will work closely with you and your Mortgage Advisor to help you understand the requirements for your application. Your Underwriter is a lender expert, gathering your information and documents to make sure your application progresses as smoothly and efficiently from application to funding.
Your Loan Coordinator is the administrative expert, supporting your Mortgage Advisor & Underwriter. The Coordinator manages third-party reports like credit and appraisals and makes sure the lender has everything they need to expedite the funding of the loan.
Your Client Service Team will guide you through our easy process to your loan funding and provide follow-up service and support.
How do I know that my personal and financial information is safe?
We have put in place many leading-edge processes and bank-grade encryption safeguards to make sure that your information is completely secure. We only share your data with third party companies under specific terms and agreements such as credit bureaus, lenders and title companies - for the exclusive purpose of evaluating and approving your loan application. We never share or sell your information to third parties for the purpose of marketing their products or services to you.
How does RateStreet offer mortgage options that other companies can not?
Our vast lender network and higher loan volume provides our clients certain unique options. We are able to offer loan products that many retail banks and brokerages don’t. We specifically choose our lenders so that our mortgage marketplace can meet a broad spectrum of financial situations. Our Mortgage Advisors will quickly guide you through all of the best available options and present the very best solutions.
How does RateStreet close loans in as few as 7 days?
We’ve built internal technology that helps our teams process your loan faster and more efficiently. We have also restructured the standard loan origination methods, bringing best-of-class technology together with our best-of-class Mortgage Advisors, to ensure our clients get the best overall loan experience.