Lowest Rate Mortgage Canada
A lowest rate mortgage Canada can definitely save you a great deal of money because a mortgage loan is often taken for a long period of time, such as for 10, 15, or even 30 years. Therefore, it always pays to do a thorough research and comparison shopping to get the best possible deal. This will definitely take some time, but considering the long-term advantages that a lowest rate mortgage Canada has to offer, it is worth spending that much time. Even the reduction of a quarter of an interest point can make a world of difference. Even minor reductions in rates can help you save thousands of dollars in the long run. Following are some tried and tested ways to lower the mortgage rates. Whether you are considering refinancing an existing mortgage or looking out for a new mortgage loan, these tips can make things much easier for you.
Check Your Credit Score
When it comes to getting the lowest rate mortgage Canada, the first thing that you have to do is to check your credit score. It is very important for you to keep in mind that the rates are inversely proportional to the credit score. It means if you have a high score, you can qualify for a low rate, but if you have a low score, most lenders will offer you mortgage at high rates. So, make sure that the score that your credit reporting is reflecting is correct and free from errors. Sometimes, an entry is missing in the report, which results in low credit score. Therefore, if you come across any such thing, you must take immediate actions to rectify the errors. Clean up the report thoroughly to boost the rating. You can contact the reporting agencies and provide them the proof of the errors you want them to correct. For example, if the report is showing a paid bill in the column of unpaid bills, you can send the receipt of the payment as a proof.
Do Some Credit Repair
Considering the importance of the credit score, it is always worth spending some time to repair your credit as much as possible. A nice strategy is to act in advance. For example, if you are planning to take a mortgage loan, wait for six months and use this period to do some credit repair works. For example, you may like to utilize this time to pay off some high rate debts.
Go For Short-Term Mortgages
The actual loan term is another factor that influences the rate of the mortgage. If you are borrowing for a short period of time, you can easily find lenders that will be more than willing to offer a very low rate. The shorter the loan term the lower the rates. But, here it is very important for you to keep in mind that a shorter period will also result in a higher amount of monthly payment. But, the good thing is that you can save thousands of money over the long haul. This option is especially viable for those who are capable to make higher monthly payments.
Look At Your Repayment Capability
When you place a request to a lender to lower the mortgage rate Canada, you will have to show them your income documents in order to convince them that you can easily make the repayment in time. So, the next step is to gather all necessary income documentation. For example, if you are a self-employed professional, you will need documents like your latest tax return, check stubs, and old and outstanding contracts. The more derailed information you provide the better quote you are likely to get.
Be Willing To Make A High Amount Of Down Payment
Another guaranteed way to get lowest rate mortgage Canada is to opt for a higher down payment. The more money you pay as down payment, the lower rates you are likely to be offered.
Once you receive mortgage quotes from different lenders, the next thing you have to do is do a thorough apple-to-apple comparison. It means you do have to compare the rates, but keeping in mind several other factors as well. The idea is to make sure there is no catch in the form of hidden expenses. Compare all the factors thoroughly, such as title insurance, assessment, discount points, origination fees, and other closing costs.