How To Find The Right Mortgage Deal

1. How To Find The Right Mortgage Deal

2. Synopsis • Feeling Concerned about the New Mortgage Rules in Canada? Know How to Proceed! • Tips to Remember to Help You Find the Right Mortgage Deal in Canada • Want to Apply for a Mortgage? Do It the Right Way to Find the Best Deal! • Some Mistakes to Avoid When Looking for a Mortgage

3. Feeling Concerned about the New Mortgage Rules in Canada? Know How to Proceed! • Do Not Leave Other Debts Hanging • In the light of new mortgage rules, you should never try to file your application for a home loan unless you have cleared all your other loans. The stress test is surely going to derail your plans if there are other outstanding loans showing in your report. Understand that any debt you already have will have a direct impact on how much mortgage you can get. So, be sure to check any outstanding loan or unpaid credit card before you decide to apply for a mortgage. • Never go ahead without checking the fine print • It has never been this important to check the fine print before finalizing your decision to obtain a mortgage from a lender. Do not just fall prey to those fascinating offers created by lenders in the industry. For instance, some would ask you to get preapproved first and then buy a property within 120 days of getting pre-approved to become 'immune' to the effects of the new stress test. Therefore, it is important to pay attention to the complete picture, especially if you are a move-up or repeat buyer interested in buying a bigger home than what you currently have. • Do Not Be Afraid of Making Adjustments • With new rules now in effect, you should consider working with a right broker and be willing to make certain adjustments to your plans. A good idea would be to delay buying for a while until you can build up a better down payment. If you cannot wait, you may have to stay content with whatever you can afford at the moment, which is likely to be less than what you might have obtained last year.

4. Tips to Remember to Help You Find the Right Mortgage Deal in Canada • Do not fall prey to the offers claiming that you are going to get the best five-year rate. The reason is that after the new rules mortgage pricing is no longer based on the best rate quote only. Many other factors will now play a role here. Your personal situation matters the most. Therefore, you may want to work with the company that performs an in-depth assessment of your current circumstances and then select the best products for you. • Going long and variable is likely to help you over an extended period. People with over 20% equity should consider a 30-year amortization mortgage to enjoy some amazing benefits. Such deals would have the benefits, like easier mortgage qualifying, more purchasing power, and lower payments to increase cash flow. You can also use this option to divert cash and use it for investing. However, it makes sense to work with an experienced mortgage broker to discuss if these strategies are really going to prove effective considering your unique circumstances. • Be sure to check all the details before signing the dotted line. In many cases, you will be able to save thousands ensuring that you are getting a mortgage with a fair prepayment penalty. It should also treat you nicely and fairly at renewal. Therefore, you should not have your focus only on finding the lowest rate possible because other details are going to matter as well. • Think twice before opting for high-ratio insurance. Many people make the mistake of using this option and end up paying more than expected. Keep in mind that most lenders are willing to offer better rates to borrowers who require mortgage insurance when they have less than 20% down. It means you do not really need to purchase it when you have more than 20% down. But again, your unique circumstances can change the whole picture because some companies are willing to offer lower rates when you purchase mortgage insurance even with more than 20% down. Your mortgage broker may help you identify the most suitable option here.

5. Want to Apply for a Mortgage? Do It the Right Way to Find the Best Deal! • You can do it by working with a licensed mortgage agent or mortgage broker. They are also known as mortgage consultants, mortgage planners, or mortgage specialists and usually help A-Class and B-Class customers. • You can also get a mortgage by working directly with a bank. Most banks have branches to deal with mortgage applications only. They usually facilitate A-Class borrowers with an exceptional credit history. • You can also consider getting a mortgage by working with some individual financial institutes. They are usually considered B-type lenders and serve mostly B-Class borrowers. • You can also go to private lenders and ask them for a loan. These lenders may serve B-Class borrowers.

6. Some Mistakes to Avoid When Looking for a Mortgage • Avoid selecting a collateral loan • The collateral mortgage may help you find a better rate, but you should avoid making this mistake when the rates' difference is insignificant. In the mortgage industry, you will find many major lenders, including some chartered banks trying everything to make you opt for a collateral mortgage. However, there is no need to go for it if you can find the similar rates for real mortgage program. Going for a collateral loan may be a bit riskier and expensive because you may have to deal with a legal fee, especially when you decide to switch lenders. • Avoid a broker with very high rates • It is natural that people avoid brokers that may offer very high rates. However, the real issue is that many brokers would offer a high rate first but they would later make you use their "match policy" to find a cheaper deal. Such behavior suggests that you are working with an unscrupulous agent who is more concerned about getting more profits. The problem is that they make you find a deal yourself and offer you to match it themselves. • Do not always trust big banks for loans • Many people think that since they have a good credit score, they are likely to get a better deal from big banks only. The truth is that you should still consider shopping around and never stop checking what small lenders have to offer. An important thing to understand is that mortgage specialists working in the banks usually do not require any license. It means that if something goes wrong, you will not have any place to file a complaint. Those licensed mortgage brokers are extremely careful about offering what they promise or else their license will be at stake. In Ontario, Canada, there are provincial government organizations taking care of all licensed agents and brokers, so you can file a complaint with them in case something is not as per your expectations.

7. The End For more details, please visit: https://mortgagesolutionsgroup.ca/mortage-rates/