How to Get the Best Mortgage Rates in Canada?

Whether you’re just buying your first home or you’ve been a home owner for 20 years, everyone wants to make sure they’re getting the absolute best interest rate on a mortgage. It might seem like the banks just pick a number every day and anyone who goes in on that day gets that rate, but it isn’t exactly like that. There are some ways to make sure you get the best mortgage rate you possible can, no matter when you renew or sign your mortgage documents. Here are a few tips to make sure you get the best rate.

Do Your Homework

If you’re already a homeowner, with a mortgage, you have the paperwork outlining your current mortgage. It might be tucked into an “Important Paperwork” folder, so dig it out and take a look at it. If you don’t know what the terms of your current mortgage are, how can you know what will be better? Make sure you know the terms, rates and amount of your mortgage right now. Also, it’s important to look and see if there’s any penalty to break your mortgage if you go with a different lender. This will help you determine the best option for you.

Talk to your existing lender

If you think you might be able to get a better mortgage, or see a better advertised rate then talk to your lender. If you go in and talk to them to see what your options are, you might be surprised with what they can offer you.

And then shop around

If your lender isn’t willing to work with you for something better, or maybe they just can’t, then don’t be afraid to shop around with other banks. Make sure you completely understand the terms of your current obligation, though, so that if you find a better rate you can renew with that lender without being heavily financially penalized by your current lender.

Talk to a mortgage broker

Many people don’t actually understand all the ins and outs of a mortgage, and what all the financial jargon really means. If you’re one of these people, then talking to a mortgage broker might be beneficial for you. They aren’t tied to one lender, so they don’t have to worry about making sure you pick that lender. They can give you independent advice about what really is the best mortgage for you based on your lifestyle, and help you understand any financial terms you don’t understand.

Lock in a rate

Have you been talking to a lender, and they offered you a really attractive rate but you aren’t ready to sign today? That’s ok! What you can do is ask them to pre-approve you for that rate, and a pre-approval is typically good for anywhere from 90 to 120 days. If you get that pre-approval, your rate is locked in, so you have some time to think about it. You can also use this time to go back and talk to your current lender and see if they’re willing to budge. This makes sure you get that low rate, if it’s the best you can find and it’s really right for you.