With a home being the most expensive purchase that most people will make in their lifetime, Canadians are surprisingly not as concerned with finding a good deal for their mortgage loans as the rest of the 10 countries surveyed by HSBC. HSBC’s data showed that Canadians are the least concerned amongst homeowners when it comes to mortgage rates.
Just about half of Canadian respondents said they shopped around to get the best mortgage rate for their property, a figure that is 10% less than the global average of 61%. But why even try to get the best mortgage rate, to begin with? Why is this important? Well, a difference of mere decimal places can mean savings of thousands or tens of thousands of dollars in mortgage payments! That is a huge deal. If you want to save some of your hard-earned money, below are ways on how to get the best mortgage rate in Canada.
Try Using Rate-Comparison Sites
Do you know that you can save a lot on your mortgage simply by shopping for lenders using rate-comparison sites? The information that you will get will not be as in-depth as what a mortgage professional can get for you but it won’t hurt to search using RateSupermarket.ca, Ratehub.ca, LowestRates.ca, and RateSpy.com to have a general idea of what rates you can expect.
The downside of using rate comparison sites is that your data is limited to those that are signed up on those sites and that most are cookie-cutter lenders. The main benefit is you can do this from anywhere without committing to anything.
Talk to Your Bank
Once you have an idea of possible mortgage rates, you can now walk right up to the mortgage department of your local bank and see what rate you can get. This way, you won’t be taken in for a ride or be dazzled by sales talk because you already know what figures are considered good. If you’re lucky, your bank may even give you a great rate more so if you’re an account holder with good standing.
The downside is that your bank may not believe that you can get a better rate elsewhere and may try to intimidate or sweet talk you. The benefit is that you may be able to get some fees forfeited if you have an account with them.
Contact Mortgage Professionals
Mortgage professionals are people who have contacts with both big and small lenders and act as middlemen between lenders and borrowers. Because they have connections with local lenders, they have access to information that a bank or rate comparison site cannot provide, making them invaluable to borrowers.
The downside is that they get a commission from the lender so you’ll have to make sure you read all the fine print of any agreement. Benefits include saving time and having someone negotiate on your behalf.
Are you looking for a way to make sure that you get the best mortgage rate for your home loan? Contact us at Homebase Mortgages.