Hello,

I remember reading in "Real Estate Investing in Canada" that it is possible to negotiate a mortgage rate up to about 0.25%. Do you guys have any tips on how to go about negotiating the rate?
I am currently purchasing my second rental property and dealing with CIBC for the mortgage as they had the best terms/rates. Right now, I have 2.94% , 2 years fixed, locked in.
CIBC is telling me that, because it will be a rental property, they have to add 0.15% to the rate and, because I want a 30 year mortgage, they have to add another 0.10%. Should I fight back?

Thank you for sharing your thoughts.

The best negotiator for you is an investment focused mortgage broker .. for free !

Many of them are REIN members and/or blog here.

Never approach a bank directly.

Do you also buy laundry soap that way ?


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Always push back the bank rates, let your bank know you have meetings with other lenders as there rate is too high. They will then likely try to find out what rate you are getting elsewhere or the rate you are looking for so they can adjust their rate to be competitive. Don’t give them this information, instead say something like “why would it matter to your best rate? If you want to give me your best then just tell me what it is so I can properly consider it when I decide who to go with.” NOTE: make sure you don’t close the door on the deal you have as who knows if you’ll actually get better elsewhere or even qualify

Has worked well for me in the past.


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The rate premiums charged by lenders on rental properties varies from .05 to .35%. If you are only going to deal with one bank ans not a mortgage broker then you are stuck with what they offer.

As a mortgage broker I will advise of the various rental financing options available through many lenders not one. The people that work at the bank represent the bank and its bottom line. As a broker we represent you and find what works best for you and tour goals.

You may contact me at [email protected] or call
4036148843

Keith Uthe
Independent Mortgage Specialist
Mortgage Alliance Enrich Mortgage Group

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ThomasBeyer said:

The best negotiator for you is an investment focused mortgage broker .. for free !

Many of them are REIN members and/or blog here.

Never approach a bank directly.

Do you also buy laundry soap that way ?


Sent from my iPhone using myREINspace

Click to expand...

Thomas, last time I checked, this may be true on smaller projects, but in the multifamily zone, mortgage brokers can hit you with a hefty fee that YOU are responsible to pay?

Shawn11100 said:

Thomas, last time I checked, this may be true on smaller projects, but in the multifamily zone, mortgage brokers can hit you with a hefty fee that YOU are responsible to pay?

Click to expand...

Yes commercial mortgage brokers need / want to get paid, and it is very common that they charge an upfront fee from 0.5 to 4% depending on loan amount. Like realtors, the higher the loan amount, the lower the commission.


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Hi Shawn:
The questions for an investor to ask is what is their time worth and how is it best spent?
Does the investor have the time to contact multiple different lenders to try and find out about rates and qualification requirements and answer their questions?
Does the investor know how to package the deal for the lender?

A mortgage broker is an extension of your team of professionals that have skills and knowledge that supplement you to help you grow not to hold you back. Yes you will pay a mortgage broker fee once, however have you considered what that cost is compared to what your annual tax preparation cost is for the next 10-20 years. You will end up paying your accountant way more, yet you would not likely try to do those taxes on your own. In addition the mortgage broker fees are a tax deductible expense to the property.

Keith Uthe, REIA
Independent Mortgage Specialist
Mortgage Alliance Enrich Mortgage Group