Best Mortgage Rate Canada

The Best Mortgage Rate Myth


Are you shopping for the best mortgage rate? If you are looking to buy a new home, shopping for best mortgage rate and getting your mortgage approved is one of the time consuming and at the same time important task as part of your home buying journey. Simply put, there’s a lot at stake especially in the Toronto real estate market. If you are looking to renew your mortgage either this year or in the next 3 years you are not alone.

According to an article published by Better Dwelling,

“More than half of residential mortgage holders are expected to have their mortgage “rate reset.”

The ultimate question is, how do you shop for best mortgage rates?

You may consider the ideal avenues for you to find the best mortgage rates in the market, is to  

  1. Search the internet
  2. Visit Mortgage comparison website(s)
  3. Applying for mortgage pre-approval at any one of the 5 banks  
  4. Working with the Mortgage Agent(s)

What is the better way to shop for best mortgage rates?  In order for us evaluate how to shop for best mortgage rate is to first understand how is your mortgage rate is calculated. The mortgage industry is highly regulated and the lenders go through a rigorous evaluation to understand you, your credit and the security which is your property before approving your mortgage and offering you a mortgage rate.

Whether you search the internet or visit a mortgage comparison website to shop for best mortgage rate; the published rates no matter how low they may be, they may not be applicable to you.  In certain cases, terms of the mortgage may not be as friendly or flexible over a long-term period, hence costing you more and I would advise you to read the fine print. The purpose of the published rates is mostly for marketing purposes and which generate leads. The publish mortgage interest rates are not based on your financial situation, hence conditions do apply and it's advertised to get your attention.

We met with Kevin Steer, who is a  trusted mortgage professional with 20 + years of financial industry experience to answer few questions on best mortgage rates myth.  

  1. For those who are thinking of buying a home in a year or two, what can they do today to ensure their credit is in good order and what is your advice to them?  
  2. Shopping for best mortgage rates is essential for homebuyers or homeowners as there is a lot at stake (Mortgage Amount, Cost of Borrowing and T&C of the mortgage). How would you advice one of your potential client who is looking for homes on sale for the best mortgage rates?  
  3. How do you work with your clients in understanding their financial situation and how do you go about recommending the right lender and mortgage products and services?  
  4. What’s involved in getting a mortgage approved? Can you elaborate on the process and what does the home buyer need to know when looking for Houses for sale in Toronto?  
  5. How are mortgage rates calculated  and what is being considered by lenders when they offer a rate to a home buyer?
  6. In some cases, the lowest mortgage rate is not as flexible or friendly to the home buyer or homeowner over the term of the mortgage. Can you elaborate what a homebuyer or homeowner should consider when evaluating mortgage rates vs terms and conditions? What do they need to know?  
  7. Shopping for mortgage rates for mortgage renewal got a lot harder due to the introduction of the stress test. What does the homeowner need to know and how do you help your clients in the Toronto real estate market?
  8. What is involved in building a financial plan? How do you go about building your credit?
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