Are you thinking about buying a home? Are you new to Canada or self employed? Did you know that a little preparation can save you dollars in the long run? Getting the right mortgage deal can save you thousands of dollars over the life of your mortgage. One of the characteristics of a good mortgage deal is a favorable mortgage rate. We understand that finding the best mortgage rate can be overwhelming; for this reason, we are going to share tips that will definitely help you land the best mortgage interest rate in Canada.
Ensure you have a very good credit score
The first and most important move should be to request a credit report and make sure it is accurate. When deciding what interest rate to charge, most lenders will consider your credit score. Before shopping for a mortgage, work towards correcting anything negative on the credit report. Also, try to bump up your credit score before applying for a mortgage. A good credit score will not only reduce the search but also ensure you land the best mortgage interest rate.
See how much house you can afford
A great step towards getting a good mortgage deal is to know how much house you can afford and we have a great calculator to assist you with our mortgage affordability calculator. After you have established how much house you can afford, it is now time to figure out your monthly mortgage payments. A mortgage broker should be able to help you establish how much house you can afford and your monthly mortgage payments.
Find out the fees associated with your mortgage
Apart from the advertised interest rate, you should also consider all the other costs associated with a mortgage. Due to other fees charged by the lender, a mortgage at a lower advertised rate can end up costing you more. When shopping for a mortgage, always ask for all the fees associated with the mortgage. This way, you will have a clear picture of how much the mortgage will cost you.
Locking in the best mortgage rate
The length of your lock-in period will have a direct impact on your mortgage rate. To get the best rate, discuss with your mortgage broker about all the possible loan lock periods and the charges for each. The longer the lock-in period, the higher the interest rate the lender charges. To lock in the interest rate for the right length of time, be sure on when you expect to close.
The above are only a few tips to help you get the best mortgage rate in Ontario, but our best tip for getting the best mortgage rate is to contact the mortgage brokers at the Oakville Mortgage team 😉
