The Okanagan Valley’s booming real estate market makes it a hotspot for investment properties, but rate shopping myths can complicate financing. As borrowers seek optimal rates for rental purchases or development projects, misunderstandings often lead to missed opportunities. Monument Mortgages, with its deep roots in Vernon, BC, and service across Alberta, excels in clarifying these issues. Our award-winning team, boasting over $200 million in financed mortgages, applies big-picture thinking to turn myths into advantages.

This blog delves into how rate shopping misconceptions affect investment financing, drawing on our specialties in private lending, B-mortgages, and more. Whether you’re a seasoned investor or newcomer, these insights can enhance your strategy.

The Myth of Uniform Rates Across Lenders

Investors frequently assume rates are standardized, but lender appetites vary by property type—rental vs. commercial, for instance. This myth can result in suboptimal choices for cash-flow-positive investments.

Daryl Eyjolfson, our Broker/Owner with a BBA and 16+ years in the field, explains: “For investment properties, we negotiate rates considering cap rates and ROI, not just the headline number.” LinkedIn users can connect with him here for more tips.

Credit Myths and Their Toll on Investors

The fear that rate shopping harms credit is amplified for investors juggling multiple properties. Yet, consolidated inquiries through a broker mitigate this, preserving borrowing power for future deals.

Shaunna DeVries, our Office Manager and Licensed Broker, highlights: “We’ve helped clients with portfolios secure refinances without credit dips, enabling expansions.”

Here’s a table comparing rate shopping scenarios for investors:

Myths Around Private Lending Rates

A common fallacy is that private lending rates are always exorbitant and not worth shopping. For investment needs like quick closes on spec builds, these can be competitive when shopped properly.

Our expertise in investment properties in Canada shows how blending private and conventional funding optimizes costs.

Timing Myths in Volatile Markets

Believing rate shopping should wait until purchase can delay pre-approvals, especially in rising rate environments. We counter this with proactive strategies for renewals and purchases plus improvements.

Overcoming Myths for Long-Term Wealth

Dispelling these myths fosters informed decisions, leading to portfolios that build generational wealth. Our holistic advice includes credit and tax planning.

Wrapping up, rate shopping myths shouldn’t impede your investment journey. Partner with Monument Mortgages for expert guidance—let’s get started on your pre-approval today.

For further reading, check Investopedia on mortgage rates or Bank of Canada reports.