Purchasing a real estate property can be one of the most important decisions that you make. As you look into the various mortgage options in the market, here is some useful information to help you receive the best mortgage rate.
The Rate Debate
Getting the best mortgage rate in Canada doesn’t stop at getting the lowest rate. When you meet with mortgage professionals in Canada, ask if they would be willing to match a lower rate offered by another provider. Also, ask about what would happen if the rate drops after you get approved. Would they be willing to adjust and give you a better rate?
You also need to see what you would be trading off in exchange for a slightly higher rate. Will your mortgage broker take care of your future needs? For instance, when you need to port your mortgage to a new property, or refinance your mortgage? If you are not able to sell your current home and close the deal on your new home the same day, will you pay a penalty on the mortgage that you port over? Answers to such questions will help you make an informed decision.
Penalties are unpleasant but sometimes, they may be inevitable. Some circumstances that call for penalty payments are when you need to close an existing mortgage before the term is over, or you need to port it to a better (and more expensive) home, or when you have a to wait a few days between selling a home and closing on the new one. You must consult your mortgage broker to know all the cases in which you might be liable for a penalty payment so that you are well prepared when making important financial decisions.
Refinance – or Leave it to Chance?
Refinancing is an option down the mortgage road. You can either alter your mortgage period or rate depending on your financial situation. There might be some restrictions or penalties involved. Experienced mortgage professionals in Canada will guide you on mortgage refinancing and what to expect when you choose this option.
Choosing Between Different Types of Mortgages
You can evaluate and select from different types of mortgages on the market, each with their own set of pros and cons. You need to consider what distinctive features different mortgage professionals are offering. Are some mortgage brokers more accommodating than others? Will they allow you to split your mortgage into parts? Do they offer skipped payments when you are in a cash flow fix, and how often? A checklist of these questions can be handy when you survey the market for a good mortgage deal.
Your Credit Score
Sometimes, your own credit score can be a major reason for not being able to get a good mortgage rate. While some lenders will be prepared to offer your mortgage at a high rate, others may not be willing to work with you at all. Before you start searching for good mortgage deals, rectify your credit flaws by paying off your debts, streamlining your financial matters, and making timely payments. This will improve your credit score and as a result, will help you get the best mortgage.
To know more about mortgages and the services we offer, call 905-780-0908. Speak with our experienced mortgage professionals at Accumetrix Mortgage Alliance and we can help you find the best mortgage rate in Canada.