Canadians look for deals, but many opt for the first mortgage they are offered. We know this because an international HSBC survey found that Canadians came in tenth in the number that bothered to shop for a better mortgage rate. Yet the size of a mortgage means that saving a fraction of a percent here could add up to hundreds or thousands saved over the life of a loan. Here are our tips for getting the best Fort McMurray mortgage rate.
Use a Rate-Comparison Website
Rate-comparison websites allow you to see what various mortgage lenders would offer you based on a few key pieces of information like your credit, the size of the down payment, and the value of the property. You’ll be shown the likely mortgage offers you’d receive and the conditions such as the interest rate offered and fees you may be charged. Another benefit of these comparison sites is the ability to run the numbers. How much would you save in interest over the life of the loan if you chose a shorter loan term or paid a slightly larger down payment? Which lenders would offer a lower down payment if you paid more in up-front fees? How much could you save if you improved your credit score by paying down debt or cleaning up your credit report?
The interest rate comparison website is supported by the mortgage lenders who advertise on that site. It is possible that you may only be able to secure those terms by working with the mortgage broker that runs the site.
Work with a Mortgage Broker
A good way to secure the best mortgage rate is to work with a Fort McMurray mortgage broker. They receive discounts from their network of mortgage lenders because they send so much business their way. The mortgage broker passes these savings on to their customers. They can provide actionable advice for cleaning up your credit or structuring the loan in a way that minimizes your risk profile so you can qualify for a better interest rate. Their network of lenders will include at least one willing to loan money for properties other lenders consider risky, whether it is a fixer-upper, rural cabin off the grid or land for a trailer.
Negotiate with Your Preferred Lender
You do have the ability to negotiate a mortgage the same way you can negotiate down the purchase price of a home. You may be able to get a lower interest rate or lower closing costs if you negotiate. This process is made easier if you have data from a mortgage interest rate comparison website, since you can show them what other lenders would be willing to offer you. Your current lender could give you a lower interest rate if you allow the house payment to be deducted from your bank account. Ask what you could do to qualify for a better interest rate or lower fees. You lose nothing for asking and could literally save quite a bit.
Call Jodi Whalen with Whalen Mortgages today to get the best mortgages rates in Fort McMurray.