Many of our clients want to know: “What’s the best five-year rate?” The truth is, the “best” mortgage rates will change a few times a day. On top of that, there are ongoing urgent updates that happen a few times a day depending on what is happening in the market. These updates include changing the best five-year rate as well as changes in terms of the lending products.
Furthermore, your best rate won’t be the same as another buyer’s best rate. In Canada, different buyers will get different rates, terms, and conditions on their mortgage. Imagine two buyers, each looking to buy a $400,000 house. The newly-arrived unemployed immigrant may be offered different terms than the self-employed Canadian citizen making $35,000 per year. Who gets the best rate?
The answer may surprise you: it’s often the newcomer, even if they haven’t arrived in Canada yet.
The rates that are presented on our website are the best in each category. That means that that the rates for different products might very well be offered by different lenders, and that not every buyer will qualify for the best rate in every product. For example, when we have the deals of the day on the website, it’s probable that the bank with the best deal for three years won’t have the best deal for other options, like five years. It’s often the case that the “best” rate for three years is offered only for employed people, but not self-employed, or that there is a minimum credit score to access this rate, or other factors that impact which mortgage would be the best for you. Our website lists the best rates from different institutions, but choosing your best mortgage is a strategic decision. The question isn’t just what the best rate is for you, but what’s the best mortgage for you? To answer that question, we start by collecting and analyzing data about you – your finances, your goals, and your dreams for this mortgage and this property. From there, we’ll be able to determine the terms and nature of the mortgage that would best meet your needs, and decide from there which institution to approach.
In order to save money for the whole 25 years of a mortgage, it’s important to look at the fine print and the contract terms. Differences of 0.1% rate may lead to savings, but not necessarily significant ones. In contrast, the difference in how penalties are calculated by different institutions could sum up to thousands or even ten of thousands of dollars. If you’re looking to save money and find the best mortgage for you, please call us.