How do you know whether you are being quoted the best mortgage rates in Canada? It is easy to go from bank to bank to get quoted on a mortgage, but it’s difficult to understand what it is you qualify for and whether or not what you’re being quoted is indeed the best. Each bank has a different approval process, and different criteria in selecting what rates you may qualify for. They take into consideration not only your beacon score but also your credit report/history, income, strength of employment, debt servicing ratios and much more. Sometimes, although credit and income may be great, it does not automatically qualify you for the best mortgage rates in Canada, as the overall application is ultimately what they look at. Likewise, it is possible that the banks may quote you on a rate that isn’t necessarily the best rate you qualify for. This is when working with a brokerage such as CMS can help secure what you deserve. As a homeowner or future homeowner, it is beneficial to collaborate with a brokerage that does business with these banks/lenders on a regular basis. At Canadian Mortgage Services, we deal with over 20 banks, alternative lender and private lenders. With a large portfolio such as this, we have already built a strong relationship that will give us the negotiating power we need to get you the best you deserve.
Now, what really determines who gets the best mortgage rates in Canada and who doesn’t? Well realistically, you do. Sometimes, homeowners/future homeowners’ looks passed the reality of their credit. Credit is among many other factors that determine your chances of getting the best rate, however it is probably the most important. The best mortgage rates in Canada are not available to everyone. The criteria often include a minimum beacon score of at least 650 and a debt servicing ratio that is fairly low in comparison to alternative lending. If you have flawed credit, collections, judgments or proposals, it is not likely that you would be approved for the bank posted rates.
Also, when shopping for a mortgage it is mentionable to worry less about the posted rates and worry more about your goals and current financial situation. The best mortgage rates in Canada may not be the best rates for you, and truly, the ‘best rate’ in everyone’s mind is always just the lowest rate. The best mortgage rates in Canada could be the new variable rates… or they could be the most recent 5 year fixed rates. Perhaps you are comfortable with variable rates, and can afford to take the risk of fluctuations, but perhaps you are less risk savvy and prefer a consistent fixed payment for the next 5 years. See, the best isn’t always just the lowest. Numbers are deceiving and it isn’t unlikely that many mortgage shoppers will act faster on the lower number without thinking about the long term investment.
Confused? You might be and that’s okay. It most likely isn’t your area of expertise. This isn’t nearly as stressful as shopping for a pair of shoes or even a car. What most people lack in their mortgage process is guidance. Guidance combined with expertise is the key to getting the best that you qualify for. In the mortgage industry, there is no favoritism towards brokerages, but what banks and lenders do like is a strongly positioned application outlining all strengths and solutions to any weaknesses which will ultimately result in getting you the best mortgage rates in Canada that you qualify for.