Archive for June 2016

Is It Hard To Land The Best Mortgage Rates?

House hunting always comes with searching for mortgages. You are lucky if you can pay the house that you like upfront, meaning, with the money you have saved in the bank. What if what you have is only enough for the down payment and a portion of other related expenses? The next thing you should bear in mind then is to seek mortgage help. When you do, you have to know how to get the best mortgage rates.

Prepare your finances

Your finances will always affect the mortgage rate and even the mortgage deal you can avail of in its totality thus you have to prepare for one. When preparing your finances, you have to make sure you are ready with the basic 20% down payment required. Alongside this, you also have to take two steps – first is to prepare your credit report and second is to pay CMHC insurance in case you do not have enough cash to pay for the down payment. Paying attention to all these finance-related records and payments will make it even easier for you to have your mortgage processed whilst also making sure you are offered the mortgage rate that you have always wanted.

Ask help from a broker

broker

If you do not love math (or sometimes even if you do), chances are you will have a hard time understanding which mortgage rate will work best for you. A broker is what you need in this regard. A broker can help you do away with the need to visit all the banks in town just to compare mortgage prices and rates. The good thing about working with mortgage brokers is you can always trust them when it comes to being able to talk to multiple lenders and from there, they can make all negotiations on your behalf so that you can get the best mortgage rate that will work within your budget.

Always choose a mortgage that will meet your needs and expectations

In the world of mortgage rates, you are given two choices. The first one is called the variable mortgage rate which commonly starts at a lower rate but depending on what has been set by the Bank of Canada, this rate can change or fluctuate through time. The other choice is called the fixed mortgage rate, one where you are expected to pay the amortisation based on a rate that is fixed throughout the term of the loan.

It will be quite difficult to calculate which between these two rates are better over that of the other. It will then be good to reconsider getting a mortgage that allows you to avail of prepayment options where you can either reduce the term of the loan or pay more than your amortisation.

Choosing from various mortgage rates can be quite tricky. Add to that, you have to bear in mind that not all lenders offering the lowest mortgage rates offer the best rates. With the help of a reputable mortgage broker who can do all the negotiations for you, this should be less of a problem on your part.