What Should I Look For In A Mortgage Rate?
Its important when looking at different products to distinguish between the best mortgage rates and the lowest mortgage rates. They are often different, as they may contradict your own personal financial goals. For example, if you are looking to get a home equity loan, you will want to find a financial institution that will be able to offer this to you. These institutions may not offer the lowest mortgage rates – but may still be the best mortgage rates for you, as it can allow you achieve your goals.
Why Should I Shop Around?
When you walk into your bank – and ask for the best mortgage product or the best mortgage rates – you are only offered the institution’s own services. It is important when getting qualified for how much you can afford, that you explore multiple lenders. With our service, we bring the mortgage marketplace directly to you – so you can navigate between different mortgage rates and products from the comfort of your own home.
What is the best mortgage term to select?
Choosing the best mortgage term can be challenging, it’s important to factor in a few important questions. What if I want to sell my home during my mortgage term? How about if I get relocated to a different location for work? I want to sell my house and go back to renting to lock in profits? Typically shorter mortgage terms offer you the ability to switch lenders, they offer the lowest mortgage rates, but coming up for your mortgage renewal early means that you will be subject to the current offers which may be higher than before.
When Can I Refinance?
In order to refinance – you have to have more than 20% of equity available in your property, for you to qualify for a new first mortgage. Refinancing allows you to either increase your mortgage, typically for investment purposes or debt consolidation. Furthermore this also includes increasing the total length of the loan or amortization. By increasing your amortization or total length of your loan – you will be reducing your monthly mortgage payment.
What if mortgage rates change?
Similar to investments, the rate of interest – that is offered at any one given time, is subject to the market. Fixed mortgage rates are based on the Canadian bond yield. Variable mortgage rates are based on the Prime Rate of Canada – which historically has correlated closely to the overnight lending rate, set by the Bank of Canada. If your mortgage rates increase or decrease while you have a live deal in place, your rate stays intact. In most cases, if rates decrease you will be able to request a rate drop, and get the lowest mortgage rates available.
Should I Shop For Mortgage Rates Myself?
Each financial institution is required to preform a credit report. When you inquire at multiple institutions and do not employ the free services of a mortgage broker or mortgage agent – your credit score WILL be affected. Why is this? Each institution has to pull separate reports – this indicates to Equifax and Transunion that you are seeking credit aggressively. With a mortgage broker you are able to use one credit report, when shopping for the lowest mortgage rates and each institution will rely on this report.
- “I would recommend Loanerr.ca to all of my friends and colleagues. As a client who was looking to renew for the first time, the process on Loanerr was soo much faster and efficient AND they got me a better rate than my bank offered!”Tommy
- “The rate I received from Loanerr.ca was much better than anything my bank offered me and it saved me a ton of money!”Sarah
- “Loanerr’s Customer Service team went above and beyond in ensuring I got the product that best suited my needs while keeping me in the loop all throughout the process.”Jane
- “As a Real Estate Agent who used to work primarily with one mortgage broker, I have now realized the benefits of working with a mortgage company to satisfy my clients needs rather than one individual. Loanerr’s unbiased service to each client no matter the loan size has been paramount in each one of my client’s financing process.”Danielle
- “As a first-time homebuyer, I was unfamiliar with the entire process of buying a home. I tried to do some research but found myself getting overwhelmed rather quick into my search. My Mortgage Company Loanerr.ca not only secured a better rate than I had been offered but also patiently and thoroughly guided me through the process."Jason
- “The borrower portal offered to me and my wife was an amazing tool for tracking the progress of our loan. As a first time home buyer, I don’t know what we would have done without it!”Tony