Generic prices are distinguished from transaction specific prices, which pertain to the characteristics of a specific transaction. "Market nichification" means that lenders vary the terms they offer borrowers based on a large number of loan, borrower and property characteristics that they believe affect the risk or cost of the loan to them.

Lenders consider loans that are used to purchase a property for investment riskier than loans used to purchase a property that will be occupied as a residence by the borrower. To compensate lenders for the risk, these loans carry a rate higher than that on loans for personal occupancy. In addition, the maximum amount you can borrow on an investor loan is smaller than the amount you can borrow on a loan for occupancy.

While the precise figures will vary a bit from lender to lender, you will find yourself paying more and able to borrow less no matter which lender or mortgage broker you solicit.