Top Reasons to look and Research before Locking into a Mortgage Rate
Who does not wish to own their own personal home one day? Every day, more and more Canadians are taking the decision to secure their future with real estate and the dropping mortgage rates are only fuelling their desire to do so.
However, how many of us stop, think, research and plan for our mortgage?
Research shows that almost 80 percent of potential homebuyers in both Canada and the United states end up buying their first mortgage from their main bank our financial institution. That being said, a large number of people go for the advertised mortgage rates; assuming them to be the best for them, rather than looking into more options like their term and type.
Why does that happen? And what is there to save when you ask around and compare different mortgage rates? Keep reading to find out!
How Much Can You Save?
According to a survey conducted by the Bank of Canada, Canadians can save up to $1500 if they research and compare mortgage rates before shopping for a particular product. Furthermore, they can also decide upon various terms and types of mortgages, going for the one that best suits their needs and save the most interest in the coming years.
Banks or Brokers – The Battle Rages On!
A lot of people rely on the Big 8 of the Canadian financial market, i.e. turn to these 8 major banks when shopping for a Canada mortgage. However, it has been proven that going for brokers instead of banks has always been a more affordable option for buyers.
Brokers often get discounts and reductions from lenders because of buying mortgages in bulk, so you can get your hands on more affordable deals and attractive mortgage rates when you get your first mortgage through them.
Ask For It Twice To Break The Ice!
Comparing your mortgage rate with other similar products and exploring other options rather than going for the posted rate almost always gets you positive results. Studies show that almost 25 percent of borrowers never ask for something other than the posted rate, although they may have got a discount or more feasible option if the would have researched, compared and negotiated.
The more you communicate and talk with your lender or broker about different Canada mortgage options, the more is a chance that you will end up with a mortgage that really turns out to be the best financial decision you take!
Stop and Save!
A little extra research never goes waste. When you are thinking of buying a new home, always make sure that researching for the best mortgage rates and comparing different options is also on your list along with researching on the type of property and neighborhood.
You can also use online tools such as mortgage calculators to analyze in advance how much a particular mortgage rate is going to cost you in the long run and whether or not it is the most affordable solution for you at the moment.