Negotiation script · Fixed mortgage
Script for negotiating a new mortgage rate
A lender's first mortgage quote is often close to its posted rate, which is a list price that borrowers are often offered below. Before you accept, it helps to know how the quote compares with what lenders actually charged on similar new mortgages, and what any gap costs over the term. Grade the quote in the fixed mortgage checker or the variable mortgage checker, get a second written quote for the same product, then use this script to ask for a better offer. The goal is a clear comparison, not pressure.
Score the offer first
The conversation
Adapt the wording to your situation. Be accurate about any competing quote you mention.
- You
Hi, thanks for the quote on the five-year fixed. Before I go further, I'd like to talk about the rate.
Tip: Keep it friendly. You're asking a normal question, not making a demand.
- Lender
Of course. The rate I quoted was 4.84% on a five-year fixed with a 25-year amortization.
- You
I checked that against the Bank of Canada's average rate on new mortgages for the same term, and I also have a written quote at 4.54% from another lender for the same product.
Tip: Name the product exactly: term, fixed or variable, insured or uninsured. Like-for-like comparisons are harder to dismiss.
- Lender
Is that quote for the same amortization and with similar features?
- You
Yes, same term and amortization. I can forward it. On this mortgage the difference is about $84.16 a month and $7,194 in interest over five years.
Tip: Only share real quotes. If the features differ, say so; it keeps the conversation honest.
- Lender
I'll need to see what pricing I can get approved. Let me check.
- You
Thank you. I'd like to work with you if the numbers are close. Could you check the most competitive rate you can offer for this exact mortgage?
- Lender
I can bring it down somewhat. Would you like me to update the quote?
- You
Yes please. Could the updated quote include the rate hold period, the prepayment privileges and how the penalty is calculated if I break the mortgage early?
Tip: Penalty terms and prepayment privileges can be worth more than a small rate difference if your plans change.
- Lender
I'll include all of that in writing.
- You
Thanks. I'll compare it with the other quote and let you know.
Tip: Leave the call without committing. A decision is easier with both written offers side by side.
| At 4.84% | At 4.54% | |
|---|---|---|
| Monthly payment | $2,862.65 | $2,778.49 |
| Interest over 5 years | $113,176 | $105,982 |
| Balance after 5 years | $441,417 | $439,272 |
If they say no
“"That's already below our posted rate."”
"I understand posted rates are list prices. I'm comparing with the average rate lenders actually charged on similar new mortgages and with a written quote at 4.54%. Is there any room to move closer to that?"
“"The other lender's rate probably has restrictions."”
"That's worth checking. Could you tell me which features of your mortgage you think are better, so I can compare the full offers, not just the rate?"
“"I can't change the rate, but I can extend the rate hold."”
"Thanks, that's helpful. Could you put the rate hold in writing as well, and let me know if anything else, such as prepayment privileges, is flexible?"
“"Rates could go up, so it's a good idea to lock in now."”
"I can't predict rates, so I'd like to decide on the written offers. If you can hold the current quote while I compare, that would help."
After the call
- Get the revised rate, term, amortization and rate hold in writing.
- Re-grade the new quote in the fixed mortgage checker and compare it with the competing quote.
- Compare total cost over the term with the mortgage payment calculator, not just the rate.
- Read the prepayment privileges and the penalty method; the prepayment penalty estimator shows how much the method can matter.
- Check whether the mortgage is portable and whether it is registered as a standard or collateral charge.
Questions people ask
Can you negotiate the rate on a new mortgage?
Yes. A first quote is a starting point, and lenders can often offer a discounted rate below their posted rate. A competing written quote for the same product gives the lender something specific to respond to.
Is a lower rate always the better mortgage?
Not always. Penalty terms, prepayment privileges, portability and the rate hold can be worth more than a small rate difference if you might sell, refinance or pay down a lump sum. See mortgage features worth more than rate.
Is it fair to tell a lender about another quote?
Yes, as long as the quote is real and you describe it accurately. Sharing the rate, term and features of a written offer gives the lender something specific to respond to, and overstating it tends to fall apart once documents are compared.