Banks often advertise rates that look identical to what a broker can offer.

But when you look closer, the details tell a very different story.

Here’s what most people miss 👇

1️⃣ Insurance makes the rate look cheaper

Banks often display insured mortgage rates, which apply when the down payment is under 20%.

That means you pay mortgage default insurance on top of the mortgage.

✔️ increases your loan amount

✔️ increases your interest paid

✔️ benefits the lender, not you

A broker can often offer better rates on insured mortgages anyway.

2️⃣ Amortization options are different

Insured mortgages have a maximum 25-year amortization.

Conventional mortgages offer more flexibility.

✔️ up to 30 years

✔️ sometimes up to 35 years

✔️ lower monthly payments when structured correctly

This can mean a difference of hundreds of dollars per month.

3️⃣ Long-term costs are higher

The “same rate” often results in a more expensive mortgage overall.

This is because the insurance and shorter amortization increase your payments.

✔️ higher interest paid

✔️ higher monthly payment totals

✔️ fewer repayment options

A slightly lower advertised rate does not equal long-term savings.

4️⃣ Penalties are often far higher at the bank

If you ever break your mortgage early, penalties differ dramatically.

Banks use harsher calculation methods.

✔️ bank penalties can be thousands higher

✔️ lender penalties are often more reasonable

✔️ brokers match you with lenders that save you money

Breaking a mortgage is extremely common — penalties matter.

5️⃣ Refinancing flexibility is limited

Banks tend to be stricter when you need to refinance later.

Brokers work with lenders that offer more room to access equity.

✔️ can refinance up to 80% loan-to-value

✔️ easier to access funds when needed

✔️ more options for restructuring debt

Flexibility is often worth more than a flashy advertised rate.

💬 Final Thought

A bank rate on a website rarely tells the full story — but a broker will break it down and build a strategy that saves you money.

If you want to compare the real numbers side-by-side, message The Frontline Mortgage Group anytime. 💬