After the new mortgage rules, it is going to become difficult for many Canadians to negotiate a mortgage. However, you can take advantage of some mortgage tips to go through the process with utmost ease. Here are a few things to bear in mind when looking for the right mortgage deal:
- Do not fall prey to the offers claiming that you are going to get the best five-year rate. The reason is that after the new rules mortgage pricing is no longer based on the best rate quote only. Many other factors will now play a role here. Your personal situation matters the most. Therefore, you may want to work with the company that performs an in-depth assessment of your current circumstances and then select the best products for you.
- Going long and variable is likely to help you over an extended period. People with over 20% equity should consider a 30-year amortization mortgage to enjoy some amazing benefits. Such deals would have the benefits, like easier mortgage qualifying, more purchasing power, and lower payments to increase cash flow. You can also use this option to divert cash and use it for investing. However, it makes sense to work with an experienced mortgage broker to discuss if these strategies are really going to prove effective considering your unique circumstances.
- Be sure to check all the details before signing the dotted line. In many cases, you will be able to save thousands ensuring that you are getting a mortgage with a fair prepayment penalty. It should also treat you nicely and fairly at renewal. Therefore, you should not have your focus only on finding the lowest rate possible because other details are going to matter as well.
- Think twice before opting for high-ratio insurance. Many people make the mistake of using this option and end up paying more than expected. Keep in mind that most lenders are willing to offer better rates to borrowers who require mortgage insurance when they have less than 20% down. It means you do not really need to purchase it when you have more than 20% down. But again, your unique circumstances can change the whole picture because some companies are willing to offer lower rates when you purchase mortgage insurance even with more than 20% down. Your mortgage broker may help you identify the most suitable option here.
It is quite evident that the new mortgage rules are going to make things a bit confusing for the average borrower, which is why it is more important than ever to work with a qualified and experienced broker for advice. Things may become even trickier when you do not have a paycheck to show. For self-employed, it is going to take some time to build their case, and that is exactly where they would require quality advice on mortgage planning. An experienced mortgage company can help you know the documentation and information you need to build a strong case. So, be sure to know what you are doing before you select your next mortgage deal!