Tag Archives: Online Mortgage Broker

How to Compare Mortgage Rates

Find the best mortgage rate today!

Research Mortgage Rates

Research Mortgage Rates

Did you know, homebuyers who hunt for a mortgage rate are most likely to secure a competitive financing option than those who don’t? Studies have shown that consumers who compare mortgage rates and ask questions during the pre-approval process are most likely to save more money.

How Can I Find a Great Mortgage Rate?

As mentioned by the Bank of Canada Discounting in Mortgage Markets study, homebuyers can increase their chances of securing a low mortgage rate:.

  • By collaborating with a qualified mortgage broker.
  • Asking lenders about preferential rates based upon loyalty, age, and finances.
  • People who purchase a house in a nearby city are often offered better deals.

Be Cautious of Bank Postings

When it pertains to finding the best mortgage rate, do not automatically assume that the bank’s rate is the best option. As mentioned by the Discounting in Mortgage Markets study, posted bank rates tend to be the same. It is the negotiating that occurs behind the scenes that often allows mortgage brokers to offer their clients lower rates.

Comparing rates online and exploring the market gives you the power you will need to make an informed decision. Get in touch with a mortgage broker today to begin your rate comparison and enhance your chances of finding a reasonably-priced mortgage product.

How to Know When You’re Ready to Purchase a Home

Think you are ready to be a homeowner? Here’s exactly how you can tell!

1) You have a budget

First Time Home Owner

First Time Home Owner

Factor in homeowner’s insurance coverage, property tax, fees, upkeep costs, and the best available home mortgage rate.

2) You have a sizeable down payment.

Generally, you’ll need a down payment worth 20 % of the house price.

3) You have a reliable source of income.

Getting a home is a long-term financial dedication, so you’ll require a steady income to cover those month-to-month mortgage payments.

4) You have an emergency savings fund.

If you have enough money to cover three to six months of your living expenses, you’re one step closer to being prepared.

5) You have your financial obligations under control.

Lenders like to ensure you’ll have more than enough money each month to pay your living expenses. Before they’ll give you a low mortgage rate, they take a look at your debt-to-income ratio.

6) Your credit report is in good condition.

You don’t have to have best credit to become a homeowner; however a good history can help you lower the interest payments on your Canadian mortgage rate.

7) You can make a long-term commitment.

Are you prepared to stay put for a minimum of three to five years? Normally, that’s how long you’ll have to keep the house in order to recoup your trading expenses.

8) You are prepared to become your own property owner.

Don’t buy simply because you can. You have to ensure you’re ready.

How to Negotiate Your Mortgage Rate

It’s time to start bargaining!

Mortgage Rate

Mortgage Rate

It goes without saying that you would like to secure the lowest possible mortgage rate. With that being said, negotiating your best mortgage rate will entail some homework. This way, you’ll be able to work out a fair request. Here are a few tips on how to negotiate the best Canadian mortgage rate.

1. Be Honest

Your mortgage agent will ask you a number of questions to see what best suit your needs. Tell the truth.

2. Ask Questions

If you’re confused about something, don’t hesitate to ask. Only a small group of people actually understand the ins and outs of mortgages, so don’t be shy!

3. Pay Attention to the Details

Don’t just look at the low mortgage rate your agent is offering. What prepayment options are available? Is the mortgage portable? What happens if you need to move or break the mortgage contract? Are there any transfer fees?

4. Challenge the Mortgage Rate

Ask your mortgage broker to compare mortgage rates at banks, local credit unions, and non-traditional lenders. It’s his or her job to find the rate that best suits your needs.

5. Don’t Lie

Chances are your mortgage specialist will know and you’ll ruin the relationship you’re trying to build.

6. You Can’t Get What You Don’t Ask For

Ask your mortgage broker about additional offers and bonuses.

7. Be Realistic

It’s important to note that your mortgage broker isn’t a miracle worker. Sometimes he or she won’t be able to find a lower rate. With that being said, just because you’ve had some financial hardships in the past doesn’t mean you can’t try to get a good deal! Work with your mortgage broker in order to review all available options.

How to Prepare For Mortgage Rate Increases

Can your budget handle a rate increase?

Rate Increase

Rate Increase

There is a bunch of talk about Canadian mortgage rate increases. The single biggest investment most Canadians make is their home; this represents almost 40 % of the average family’s total assets. The big problem at the moment is that many Canadians are living in homes they won’t be able to afford once interest rates start to rise. Right now The Bank of Canada‘s overnight rate is 1 % – this prime rate went above 20 % in 1981! What would happen to your home and mortgage if rates were to go up tomorrow?

Tip # 1: Pay Down Your Principal

If rates are increasing, the best plan is to lower your principle. The two most common ways to tackle this is by:

Switching from Monthly to Rapid Bi-Weekly

Switching from monthly mortgage payments to bi-weekly payments could help you save thousands of dollars in interest.

Making Lump Sum Prepayments

Try making lump sum prepayments or doubling up your payments whenever possible. This will help you tackle your debt quickly and efficiently.

Tip # 2: Plan for it Now

Open a savings account that you are able to pull from to pay for increases in your mortgage interest rate and payments down the road.

Tip # 3: Get Some Professional Advice

Speak with a mortgage professional about your options. You may be able to refinance now and lock in a low mortgage rate.

Tip # 4: Get Real About Your Debt

If you need to, downsize your home or consolidate your loans to protect yourself from rising interest rates. Most importantly, if you are shopping for a new home, calculate your affordability at a much higher interest rate – it’s the only way you can determine your chances of affording your home for the long term.

Land Transfer Tax

How much is the land transfer tax in your province?

Canada map

Land Transfer Tax

Each province has a land transfer tax, with the exception of Alberta and Saskatchewan. Ontario, British Columbia, Prince Edward Island and the city of Toronto offer land transfer tax rebates for first-time homebuyers. Considering purchasing some property? Be sure to review land transfer taxes when completing your budget and considering your Canadian mortgage rate.

Ontario first-time homebuyer land transfer tax rebate

Equal to the full value of the land transfer tax up to a maximum of $2,000.

Eligibility

The buyer must be older than 18 years, occupy the home within nine months of purchase, and has not owned a home anywhere else the world.

Purchasing a home in Toronto incurs an additional municipal land transfer tax.

Toronto first-time homebuyer land transfer tax rebate

Eligible to receive a refund up to a maximum of $3,725.

Eligibility

The buyer must be older than 18 years, occupy the home within nine months of purchase, and has not owned a home anywhere in the world.

British Columbia first-time homebuyer land transfer tax rebate

First-time homebuyers and best mortgage rate holders are eligible to receive a full land transfer tax refund on homes purchased for $425,000 or less.

Eligibility

You are Canadian citizens or permanent residents, have never owned an interest in a principal residence anywhere in the world at anytime.

Alberta and Saskatchewan land title transfer fees

Though Alberta and Saskatchewan do not have a land transfer tax, there is a charge for title transfer fees. This fee should be considered when calculating your low mortgage rate and closing costs.