Mortgage Rates

In this ever-changing housing market, there are quite a few banks that have lowered their mortgage rates without making a huge splash. Over the past few months, Bank of Montreal, Scotiabank, the Royal Bank of Canada and TD have lowered their rates to provide flexibility in the market. While low rates are usually accompanied by a campaign to get the word out, these banks have taken a stealth approach instead, slashing their rates to below three percent. These rate changes have been a source of contention for the Department of Finance, who is concerned with a housing bubble, but individuals in the process of looking for a home welcome these reductions, especially since the qualifications for obtaining a mortgage have been considerably tightened. Locking in a low rate for a five-year term can make a tremendous difference in the amount of disposable income homeowners will have after the transaction is completed. 

Homebuyers who do their homework by shopping around for the best rates have a huge advantage. By establishing a relationship with your banker or consistently checking the rates from the banks you desire to do business with, you may acquire information on rate reductions that are not widely known, which will place you in a great position. Having a knowledgeable mortgage broker that consistently follows the market can also be advantageous. With rates changing every few months, the likelihood of finding a rate that works better than one you were initially quoted is worth the time and effort. 

Due diligence makes a huge difference when considering the financial aspects of purchasing a home. By keeping in mind the benefits of researching the current rates yourself, you will place yourself at the top of the negotiation line toward getting the home you desire.