According to trending mortgage search terms in Ontario (2020), Ontarians are looking for information on the lowest mortgage rates. Here is what you need to know to get the Lowest Mortgage Rates Canada:
To ensure that you can get the lowest mortgage rates Canada, you need to KNOW a few things and you need to DO a few things! This will require some effort and discipline on your part, but if you keep this top of mind, there’s no doubt that you’ll be able to get the lowest mortgage rates available at any given time.
- No credit slip ups! – Credit is a huge component to how mortgages are priced. To a degree, the higher the credit score, the lower the interest rate. If we could deem one variable to be more important than any other when trying to get the lowest mortgage rates, credit would be that variable because it’s the one you (as the borrower) have full control over. Credit scores are important, but it’s only half the battle folks. Since the bureau reports so much data over so many years, its important to make sure your history is clean (and for 18-24 months at the least). If you need tips on improving blemished credit, we can help with this.
- Down payment – Believe it or not, yes, this has some bearing when it comes to getting the lowest mortgage rates Canada. Most borrowers do not know this. Anything less than 20% or anything greater than 35% yields the lowest mortgage rates. Under these two scenarios, the mortgage is ‘insurable’ (default insurance that is) thus allowing the bank to price your mortgage rate even lower (usually with applicable promos). This scenario only applies to purchases of course.
- Term – The lowest mortgage rates are dependent on the length of term chosen. With most banks, 5-year terms are usually discounted more than 1-4 year years terms… while a few banks might favour their 1-4 year pricing. Explore all options between 1-7 years to really make an informed decision if the mortgage rate is your primary focus.
- Amortization – In most cases, the lowest mortgage rates will be applied to 25-year amortization or less. Anything greater than 25-year amortization (26 – 30 years) will yield a higher mortgage rate (or rate ‘premiums’ as the banks refer to)
- Rate type – Depending on the market at the time you’re seeking out your mortgage options, the lowest mortgage rate will be dependent on which type of rate you choose – fixed mortgage rate or variable mortgage rate. It’s rare to see both types on par with one another. If you favour the lowest rate over all other factors involved in the decision-making process, you will be more inclined to choose the type of rate that has the lowest offer at that time.
- Negotiation – This applies mostly to mortgage renewals, but negotiation comes into play when getting the lowest mortgage rate. Don’t just accept the first renewal offer … heckle them down, use leverage, use comparisons… even use threats (but keep it strictly business!)
Finally, how will you know when you’re getting the lowest mortgage rates Canada? When you feel content. It’s a simple as that. If you don’t feel confident in being able to do this on your own, that’s what we do daily! We’re always happy to help educate and provide the guidance necessary to get you the best! Call us now at (905) 455-5005.