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.
Am I paying a higher rate to work with RateStreet? Should I get my loan directly from one of the banks?
No. When you go to a bank, there are a few key points to consider. First, your loan choices are limited to the loan products that that particular bank offers. RateStreet has a vast lender network and we can show you the 'real' lowest rates and best options available based on your situation. Second, 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 percieved discount from their original retail rates remains part of your loan agreement and often results in large pre-payment penalties. Third, Bank employees are only required and trained to promote their particular bank's loan products, that often are not in your best interest. Our Credit Advisors are licensed and trained lending professionals that know the daily changes in credit products and provide you with a completely transparent and unbiased outlook of all your best financing options.
How does RateStreet make money? How much does RateStreet get paid?
We’re a lender-paid loan originator. That means that we prepare your loan application and required supporting documents in the various ways and formats required by the lenders in our network, while negotiating the best rate and terms for your Loan Approval. In return for providing that service, the lenders pay us a percentage of the value of the loan.
We make up to 1.25% of the value of your loan. This fee may be lower depending on the lender or loan program. We also by policy use a percentage of this amount to buy down your low rate even further, ensuring that our clients always receive the very best rates.
How do RateStreet Credit Advisors get paid?
Generally, we are paid by the lender regardless of which one brings your best financing option to the table. This amount is Not added to your loan and is a less expensive option of loan origination for wholesale lenders that do not use brick & mortar retail branches. A true win-win situation. In addition, we also structure our Credit Advisors’ compensation to remove a typical commission bias that you may encounter working with most other banks and brokerages. A portion of our Credit Advisors compensation is directly linked to our client's experience and satisfaction, ensuring a high level of customer-first service is maintained.
* 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 our client's 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 wide spectrum of lending options available is yet another reason to start your loan process with us and not a retail lender with far fewer options.
How does getting a mortgage with RateStreet work?
When you work with RateStreet, you’re assigned a dedicated team of three professionals: a Credit Advisor, an Underwriter and a Loan Coordinator. Our team structure is designed to provide you with the best customer service possible to keep your loan application on track from approval to funding.
Your Credit Advisor is your guide and main point of contact, working closely with you at every step. Your Credit Advisor will help you find the loan that best meets your goals and financial situation, explaining your options so you can feel confident in your financing decisions.
Your Underwriter is a loan processing expert and the main interface between RateStreet and the lender. They’ll work closely with you and your Credit 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 as possible from start to close.
Your Loan Coordinator is the administrative expert supporting your Credit Advisor & Underwriter. The Coordinator manages third-party reports like credit and appraisal and makes sure the lender has everything they need to expedite the closing 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 put in place many safeguards to make sure that your information is secure, including bank-level encryption for your data. We do share your data with third party companies such as credit bureaus, lenders and title companies for the sole purpose of evaluating and approving your application for a loan. We never share or sell your information to third parties for the purpose of marketing their products or services to you.
How can RateStreet save me $20,000 on average?
We’ve carefully picked the lenders for our marketplace so that we can offer a broad range of products at competitive rates. Compared to the market average, our clients can get lower interest rates and save more than $20,000 over the life of their loan.
The loan scenario above assumes a conventional loan amount of $417,000, secured by owner-occupied, single family, primary residence in a major Canadian city. The loan assumes a loan-to-value (LTV) of 80% and a Beacon credit score of 700 or higher. The interest rates for the scenario above reflect the lowest rates available, taking the average rates as of 03/15/15 and 03/31/15, which were 2.59% [APR 2.638%] for RateStreet and 4.148% [APR 4.189%] for the Market Average. The Market Average interest rate is defined as the average rate across this set of major banks: TD Canada Trust (TD), Royal Bank of Canada (RBC), The Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), National Bank of Canada (NBC) and The Bank of Nova Scotia (Scotia). The savings assume equal monthly payments over the lifetime of the loan. Although the information has been obtained from the various financial institutions, the accuracy cannot be guaranteed.
How does RateStreet offer mortgage options that others can’t?
Because we work with so many lenders, some of which have retail locations and some of which only work through high-volume loan originators, we’re able to offer loan products that retail banks and some brokerages don’t. We specifically choose our lenders so that our mortgage marketplace can meet a broad range of financial situations and goals. Our Credit Advisors can quickly guide you through all of your best options available today.
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’ve also restructured the typical loan origination methods, bringing best-of-class products together with our best-of-class Credit Advisors and service providers to make sure our clients needs are met quickly and with the utmost satisfaction.