As a homeowner in Canada, it is important to take steps to ensure you get the lowest mortgage interest rate possible. With a low rate, you can save a significant amount of money over the life of the loan. Here are some strategies you can use to get the best rate:
- Shop Around: Don’t just accept the rate offered by your current lender. Shop around and compare rates from other lenders. Negotiate with your current lender and see if they are willing to match or beat the rate you’ve found elsewhere.
- Improve Your Credit: Your credit score is one of the biggest factors that lenders consider when deciding what interest rate to offer. Pay your bills on time and work on improving your credit score so you can get a better rate.
- Make a Large Down Payment: A bigger down payment can reduce the amount of money you need to borrow and can result in a better interest rate.
- Get Pre-Approved: Many lenders offer pre-approval, which can help you get a better rate. Pre-approval allows you to lock in the best rate for a certain period of time, so you can make sure you get the best deal.
- Consider a Variable Rate Mortgage: Variable rate mortgages usually have lower interest rates than fixed rate mortgages. However, it is important to understand the risks associated with a variable rate mortgage before making this decision.
By following these strategies, you can save a significant amount of money on your mortgage. Take the time to shop around and compare rates, improve your credit score, make a large down payment, get pre-approved and consider a variable rate mortgage. Doing so can help you get the best interest rate possible.