When it comes to getting a mortgage, the interest rate plays a crucial part in determining the lifetime cost of your home. Even a small difference in the rate could translate into thousands of dollars in savings or loss over the tenure of the loan. While it’s true that interest rates are influenced by the market conditions and bank policies, there are still some things you can do to ensure that you get the best mortgage rate possible. Here are some tips from mortgage brokers that you can follow:
Shop Around and Compare
Just like buying any other product or service, you should never accept the first mortgage offer that comes your way. Instead, you should shop around and compare rates and terms from different lenders. By doing so, you get to know the current market conditions, what lenders are offering and what options you have. As a mortgage brokerage firm, Axiom Mortgage Solutions does the shopping for you among Canada’s major lenders. This means that you can get access to a variety of lending options without having to approach each bank individually, and most importantly, without missing out on the best deals and rates available.
Getting pre-approved for a mortgage is an important step before you start house hunting. By getting pre-approved, you can know how much you can afford as well as get an idea of what your mortgage rate will look like. Pre-approval is a certificate given by the lender to show that you are likely to qualify for the loan, based on your income, credit score, and other financial factors. With a pre-approval certificate in hand, you can shop for a home confidently, knowing that you have a clear idea of your budget and the interest rate you are likely to get.
Improve Your Credit Score
One of the factors that affect your mortgage rate is your credit score. The higher your credit score, the lower the rate you’ll be offered by lenders. Therefore, it’s important to check your credit score before applying for a mortgage and work to improve it if necessary. Some ways to improve your credit score are by making timely payments, reducing your debt-to-income ratio, and getting any errors on your credit report corrected. By keeping your credit score in good shape, you can increase your chances of getting a lower mortgage rate.
Increase Your Down Payment
Another way to improve your chances of getting a lower mortgage rate is by increasing your down payment. The down payment is the amount of money you pay upfront when buying a home, and it represents your commitment to the property. The more money you pay upfront, the less risky you are to the lender, and the more likely you are to get a lower mortgage rate. A larger down payment also means that you have to borrow less, which translates to lower interest charges and a shorter time to repay the loan.
Consider Working with a Mortgage Broker
Working with a mortgage broker can be beneficial in many ways, especially when it comes to getting the best mortgage rate. Mortgage brokers work with different lenders and have access to a variety of mortgage products and options. They also have the expertise and experience to negotiate with lenders on behalf of clients, and they can help guide you through the entire mortgage process, from pre-approval to closing. Axiom Mortgage Solutions is an independent mortgage brokerage firm with extensive experience in the industry. If you’re looking for a mortgage broker in Essex County, Windsor, Leamington or Tecumseh, get in touch with us today.
Getting the best mortgage rate is an important part of managing the lifetime cost of your home. By shopping around, getting pre-approved, improving your credit score, increasing your down payment, and working with a mortgage broker, you can improve your chances of getting the best mortgage rate. At Axiom Mortgage Solutions, we understand that every client is unique and requires personalized solutions. Contact us today to learn more about our mortgage services and how we can help you get the best mortgage rate possible.