It's literally the most common question when people FIRST start searching for the mortgage, "what's the best rate!?"
Well, my goal is that after watching this video (or reading below) you will learn about just a few (less then half!) of the important factors which go into determining what type of product or rate you'll be eligible for.
Seeing as mortgages can be confusing, what better way to compare them then with food, more specifically PIZZA🍕
So, here are some of the main factors that could narrow down your options from as many as 3,000 to as few as depending on how complex your scenario is!
Term - Depending on the length of your term your rate will change, normally the longer the term the higher the interest rate with a FIXED rate mortgage. In a variable you will commonly see the great discount for the longer term (5 years).
Downpayment - Less than 20% you will be eligible for a lower % rate as you will have to pay the CMHC insurance. Putting down 20%? You are likely to pay the highest as the lender has to pay for more expensive insurance.
Credit - Many lenders base their lending criteria (ie. how much you can borrow, your rate, even amortization) over your credit. Lower than 700? this can certainly impact you. Lower than 600? You will have options but they will be different. Best to connect with us EARLY to help you get your credit on track.
Property - Condo? Studio? Detached? All lenders have a certain level of risk, and in many cases you will have access to certain products, or not have access based on the property type.
Purpose - Rental properties almost always have a surplus to the % rate, second properties are usually exempt, in most cases if the property is for you there will be no surplus to the rate.
Location - Big city or small town or out in the country. The further your distance from a city center you will find fewer lending options and may incur a surplus with less options.
Again, these are 6 of dozens of factors which we take in account looking for a product for you! Good thing we have access to over 3000 products with our various lender partners to find just the right one for you!