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Discretionary Rate

A preferable mortgage rate that is not disclosed to a borrower up front.

Banks and credit unions often use discretionary pricing models to maximize profit. In practice, such lenders advertise higher rates and then lower them based on a customer’s:

  • application characteristics
  • negotiating skill, and
  • business with that institution.
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Last modified: January 7, 2013

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.

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