What Canadians need to know about Canadian mortgage rates?
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Getting a mortgage is not that easy like filling an application and waiting to be approved. It is vital that you employ a loan officer in a mortgage company, who you will pay so that you can get a mortgage. Large banks which finance mortgage loans need you to use their loan officers when applying for mortgage. Most loan officers charge fees and interest rates which are negotiable.
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All the mortgage rates Canada is not the same. Interest rates for low down payment is high compared to interest rates for high down payment. It is vital that you shop your loan with a few mortgage lenders. Interest rates and settlement fees work together. It is vital that you set the fees at the level you want to pay and request for low interest rates. If you want to pay a discount of the loan during negotiation do not mention about this. Wait until the fees and interest rates will be negotiated and ask what the rate will be if you pay in discount.
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Lenders who are experienced enough will change your mortgage purchasing experience. It is vital that you shop around by phone or look for a lender who is ready to work with you. Most real estate agencies suggest affiliated lending bank but this is not the best idea to make a decision based on a recommendation from an agency. One of the best ways of getting the lender information is to request for online quotes from local lenders. Give all the lenders with the right information and compare the rates. After that call all the lenders and meet them to see who you are going to be comfortable working with.
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It is vital that you work with local lenders because getting them is very easy. The benefit of local lenders is that they have low rates because they get low wholesale rates from banks. The same financial institution might offer a low rate thorough the lender because lenders spend upfront cost.
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It is essential that you give the lenders all the documents required to process the application. The form is easy to fill and the lender can do it for you. Gather all the documents required like bank statements, tax returns, pay stubs and estate contracts. When the application is over, you can decide to lock your rate or you can decide to float your rate. In this situation your rate will move with the market until you will be ready to close. Purchasing a home is a big investment but the process should not be scary. You have to be well prepared and confident of yourself. Be careful and buy what you can be able to afford. Take time and review your financial situation before you make any move. It is vital that you know your options and choose the one that is good for you. Before you choose a mortgage ask the lender whether it will fulfill all your needs.