Definition
The negotiated rate is the mortgage interest rate actually written into the loan contract after discussion between the borrower (or their broker) and the lender. It is almost always lower than the posted rate.
The negotiated discount depends on the borrower's profile (credit score, TDSR/GDSR ratios, down payment, employment stability), competition between lenders at the time of application, and the broker's volume with the lender. An AMF-licensed mortgage broker accesses wholesale grids unavailable to walk-in branch clients.
Note: the negotiated rate in the contract is the contractual rate driving your monthly payments. However, certain penalties (IRD) remain calculated on the posted rate. Always ask, in writing, for the penalty calculation formula before signing.