Definition
The discounted rate is the mortgage rate actually granted to a borrower, after a discount (rebate) off the institution's posted rate. This is what you actually pay — the posted rate being only a catalog price.
The gap between the posted rate and the discounted rate is called the 'remise' or 'negotiation premium'. On a 5-year fixed term, this gap typically ranges from 0.40% to 0.90% depending on market competition, the broker's business volume, and the borrower's file quality.
An AMF mortgage broker accesses discounted rates from multiple institutions simultaneously and can often obtain a lower rate than a consumer negotiating alone at a branch. This is one of the direct added values of mortgage brokerage.