Tips to select Best Mortgage Rates
The Mortgage rates in Canada has seen swings over the period of time. Recently Finance Minister, Jim Flaherty revised the Mortgage rules and Rates. According to the new rule which would be effective from 9th July one can borrow an amount of 80 to 85% as Loan and the rest has to be borne from own pocket. Though the amortization period has been decreased to 25 years, yet, the rule says that there will be no insurance for any mortgage longer than 25 years.
Now, it is evident that the housing market keeps on fluctuating according to the changes and announcements in the Government’s policy.
Yet, you can find out the best deal for yourself when it comes to mortgage rate. Certain tips are mentioned below for selecting a good mortgage rate-
The first step is to understand the type of Mortgage rate. You will come across two types of Mortgage rates- Adjustable and Fixed. The fixed Mortgage rate will remain unchanged throughout the period of mortgage in spite of changes in the policy or announcements made by the government. The advantage is you would be aware of the amount of repayment to be made at regular intervals. The disadvantage is if the rates are reduced at a given time then you would not be able to enjoy the benefits.
On selecting Adjustable Mortgage rates you would not pay the same repayment amount every time. The rates may appreciate or depreciate with changing policies. Hence, the advantage is you will be enjoying the period when the rates are slashed and you have to pay a bigger amount if the same is appreciated.
Prefer Paying Short Term Mortgages. If you have no signs of getting a lump sum in the later years never go for a long term Mortgage. Even though with a longer period your repayment every month would be less, yet, the interest rates will be pretty high if you choose a Mortgage for longer years.
Always negotiate the mortgage rate offered to you. The funding and loaning agencies have always the best deal in store for you so ensure you get the correct deal for yourself.
Compare the various options before making a decision. There are various factors affecting the Mortgage rate.
It is always preferred to read the terms and conditions and explores all the possibilities before you arrive a conclusion. Adequate research and thorough study will help you saving a lot of expenditure on your part.