5 Tips to Get the Best Mortgage Rates
January 13, 2023 | Posted by: Keith Leighton
5 Tips to Get the Best Mortgage Rates
Obtaining the best rates will require you to research so you know how to select a mortgage that’s right for you and can save you thousands of dollars over the course of your mortgage.
Buying your first home is an exciting time to make your dream of homeownership a reality. But at the same time, it can create stress and confusion. You may have questions about the real estate process, the lending process, or other important questions. Buying a home is likely the largest and most important decision that you will make. So, it’s important to understand what’s involved, and how you can save thousands of dollars with the best mortgage rate.
1. Do Your Research
Spend some time understanding the lending and real estate process. This includes understanding the different types of mortgage.
2. Save for Your Down Payment to Get the Best Mortgage Rate
Your down payment is money you pay towards your home purchase. It is deducted from the purchase price of your home. The remaining amount will be covered by your mortgage loan. Homebuyers require a minimum down payment of 5% of the home purchase price. So, if you have less than 5%, keep saving!
Clearly, when you have a bigger down payment it can save you money over the lifetime of your mortgage. But, if you have less than 20% of the purchase price, your lender will require you to pay for mortgage insurance.
3. Improve Your Credit Score
The minimum required credit score to get a mortgage in Canada is between 620 – 679. A good credit score over 680, you may get better borrowing rates.
Although, even if you have a good credit score, it’s wise to practice good financial habits to increase your ability to borrow money, such as:
• Spending less than 30% of your credit line
• Limiting the number of credit cards you apply for
• Paying all bills (phone, cable, hydro, etc) on time.
4. Get Professional Advice about Mortgage Rates
Working with a DLC Ideal Mortgage Broker can help you to navigate the complexity of mortgage products, options, and features, as well as, access a broad range of financing options.
A professional DLC Ideal Mortgage Broker can inform you about the variety of mortgage options and features. Different mortgage options may be more suitable for you based on your needs and future plans.
Lenders may have important restrictions related to each mortgage option, and that may end up costing you more money. Working with a DLC Ideal Mortgage Broker can save you thousands of dollars in your overall costs.
5. Get Pre-approved for a Mortgage
A pre-approved mortgage can protect you against interest rate hikes while you search and lock in a mortgage rate for up to 120 days. In addition, getting pre-approved will help you understand how much you can afford to buy your first house.
Key Takeaways:
• Your home purchase is a major investment. Ensure you get the best mortgage rate to help you save money over the lifetime of your mortgage.
• A professional DLC Ideal Mortgage Broker can help you understand the different types of mortgages, features, and restrictions.
• A pre-approved mortgage can help you lock in your interest rate while you search for your dream home.
Achieve your dream with the best mortgage rate to save you thousands of dollars over the course of your mortgage. If you are looking to make a purchase, don’t hesitate to reach out to a DLC Ideal Mortgage expert. As experts in mortgages, they have experience in all types of situations and purchases and the knowledge to walk you through the process and ensure you get the best home and mortgage for YOU.
