How To Find The Right Mortgage Deal

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How To Find The Right Mortgage Deal
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Synopsis

1. Feeling Concerned about the New Mortgage Rules in
   Canada? Know How to Proceed!
2. Tips to Remember to Help You Find the Right
   Mortgage Deal in Canada
3. Want to Apply for a Mortgage? Do It the Right Way
   to Find the Best Deal!
4. Some Mistakes to Avoid When Looking for a Mortgage

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Feeling Concerned about the New Mortgage Rules in
Canada? Know How to Proceed!

• Do Not Leave Other Debts Hanging
• In the light of new mortgage rules, you should
  never try to file your application for a home
  loan unless you have cleared all your other
  loans. The stress test is surely going to derail
  your plans if there are other outstanding loans
  showing in your report. Understand that any debt
  you already have will have a direct impact on how
  much mortgage you can get. So, be sure to check
  any outstanding loan or unpaid credit card before
  you decide to apply for a mortgage.
• Never go ahead without checking the fine print
• It has never been this important to check the
  fine print before finalizing your decision to
  obtain a mortgage from a lender. Do not just fall
  prey to those fascinating offers created by
  lenders in the industry. For instance, some would
  ask you to get preapproved first and then buy a
  property within 120 days of getting pre-approved
  to become 'immune' to the effects of the new
  stress test. Therefore, it is important to pay
  attention to the complete picture, especially if
  you are a move-up or repeat buyer interested in
  buying a bigger home than what you currently
  have.
• Do Not Be Afraid of Making Adjustments
• With new rules now in effect, you should consider
  working with a right broker and be willing to
  make certain adjustments to your plans. A good
  idea would be to delay buying for a while until
  you can build up a better down payment. If you
  cannot wait, you may have to stay content with
  whatever you can afford at the moment, which is
  likely to be less than what you might have
  obtained last year.

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Tips to Remember to Help You Find the Right
Mortgage Deal in Canada

• 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.

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Want to Apply for a Mortgage? Do It the Right Way
to Find the Best Deal!

• You can do it by working with a licensed mortgage
  agent or mortgage broker. They are also known as
  mortgage consultants, mortgage planners, or
  mortgage specialists and usually help A-Class and
  B-Class customers.
• You can also get a mortgage by working directly
  with a bank. Most banks have branches to deal
  with mortgage applications only. They usually
  facilitate A-Class borrowers with an exceptional
  credit history.
• You can also consider getting a mortgage by
  working with some individual financial
  institutes. They are usually considered B-type
  lenders and serve mostly B-Class borrowers.
• You can also go to private lenders and ask them
  for a loan. These lenders may serve B-Class
  borrowers.

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Some Mistakes to Avoid When Looking for a Mortgage

• Avoid selecting a collateral loan
• The collateral mortgage may help you find a
  better rate, but you should avoid making this
  mistake when the rates' difference is
  insignificant. In the mortgage industry, you will
  find many major lenders, including some chartered
  banks trying everything to make you opt for a
  collateral mortgage. However, there is no need to
  go for it if you can find the similar rates for
  real mortgage program. Going for a collateral
  loan may be a bit riskier and expensive because
  you may have to deal with a legal fee, especially
  when you decide to switch lenders.
• Avoid a broker with very high rates
• It is natural that people avoid brokers that may
  offer very high rates. However, the real issue is
  that many brokers would offer a high rate first
  but they would later make you use their "match
  policy" to find a cheaper deal. Such behavior
  suggests that you are working with an
  unscrupulous agent who is more concerned about
  getting more profits. The problem is that they
  make you find a deal yourself and offer you to
  match it themselves.
• Do not always trust big banks for loans
• Many people think that since they have a good
  credit score, they are likely to get a better
  deal from big banks only. The truth is that you
  should still consider shopping around and never
  stop checking what small lenders have to offer.
  An important thing to understand is that mortgage
  specialists working in the banks usually do not
  require any license. It means that if something
  goes wrong, you will not have any place to file a
  complaint. Those licensed mortgage brokers are
  extremely careful about offering what they
  promise or else their license will be at stake.
  In Ontario, Canada, there are provincial
  government organizations taking care of all
  licensed agents and brokers, so you can file a
  complaint with them in case something is not as
  per your expectations.

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The End

• For more details, please visit
• https//mortgagesolutionsgroup.ca/mortage-rates/