Never Accept the Banker’s First Offer

There is often a deviation of 2 percentage points between the “official” rate and the negotiated rate (see the table). This is far from being negligible. By paying 3% instead of 5% on a $100,000 mortgage, you will reduce your monthly payments by $100. After five years, you will have saved $10,000 in interest. Over a 25-year amortization period, interest savings will be $32,500. When we know that Quebeckers have little financial flexibility, it is merely unfortunate that not everyone try to save that money.