How to find the lowest mortgage rates
One of the best things you can do for your finances is to get a lower mortgage rate. While it’s tempting to focus on pinching pennies, the truth is that you can save a lot more over time if you focus on one of the biggest purchases you are likely to make: Your home.
Because a mortgage is such a large amount of money, and because you pay for a relatively long period of time, you can save big time if you get the best possible mortgage rate. If you want to save a great deal of money over time, a lower mortgage rate can go a long way. Here’s how to find the lowest mortgage rates.
One of the best ways to get the best possible rate is to look online. There are numerous opportunities to take care of financial matters over the Internet, and your mortgage is no exception. Start by filling out an online mortgage application on a rate comparison web site. Instead of having to go all over town to different banks, you can have mortgage lenders email you with quotes. Use a comparison site to find the lowest possible rate from a variety of companies. It’s also often possible to get a quote on a HELOC if you need one. You will need to enter the following information in order to get the most accurate mortgage rate quotes:
- Your province and postal code
- The value of the property
- Your expected down payment
- The type of mortgage you want, as well as your desired term
These items will influence the rate you end up with. The higher your down payment, for example, the more likely you are to get better deals. You can also see lower rates on one year fixed mortgage loans, although it might suit you better to get a five year fixed. It’s important to think about what you want as you begin to compare your offers.
Compare your offers
Now that you have a few mortgage rate offers, you can compare your options. If you want to make a few phone calls around town, you can do that, too — just to get an idea of what’s out there. As you compare offers, you need to be careful.
Don’t just look at the interest rates. Remember that different factors influence the mortgage rate you are quoted. Make sure that you are comparing apples to apples. You don’t want to compare the rate you get on a one year fixed mortgage with the rate being offered on a three fixed mortgage. Instead, you need to consider your individual financial situation, and what works best for you.
Also, consider other costs that might come with the loan. Lenders will provide you with details about the type of loan you are looking at. Think about what is best for your situation before you sign on the dotted line. You can also give the lenders in your town (especially at your local bank) a chance to compete. But don’t let your loyalty sway you. If the deal is better with a reputable lender with an online mortgage application, close that deal. You need to do what’s best for your finances.
Just an fyi, in todays mortgage market with lenders insuring all/most of their mortgages through cmhc, genworth, Canada guarantee even on low risk mortgages (more then 20% down), you will actually get better rates by putting down less money. It’s cheaper for a mortgage lender to get funds on high ratio mortgages (less then 20% down) as the client pays for the insurance cost. This savings is passed along to the client.