5 Tips to Get the Best Home Purchase Mortgage Rates in Canada (1)

5 Tips to Get the Best Home Purchase Mortgage Rates in Canada

Are you planning to apply a mortgage to buy your first home? When searching for your first home, you must be aware of the tips and tricks to ensure you get the best mortgage rates in Canada. Getting a competitive home purchase mortgage with flexible terms can save you thousands of dollars over the course of your mortgage.

To make your dream of homeownership a reality, applying and getting approved for a mortgage can help a lot. It’s important to understand what’s involved to save thousands of dollars along the way:


  • Do The Market Research

Buying a house requires a significant financial commitment. Spend some time learning about the real estate, lending options and mortgage processes to make the right choice. Make sure you know what you’re talking about and how it’s going to help you by doing your homework. Understanding the ins and outs of mortgages plays a keen role, along with the following


  1. Mortgage options
  2. Mortgage features
  3. Mortgage restrictions


  • Save For Down Payment

Down payment is the money you put down when purchasing a home. It is subtracted from the purchasing price of your home and the remaining balance is covered by a mortgage. A conventional mortgage is available if you afford to pay 20% or more of the property’s worth. 

In case, your down payment is less than 20%, you qualify for a high-ratio mortgage that requires homebuyers to pay mortgage default insurance. Homebuyers must make a down payment of at least 5% of the buying price of a home.


  • Improve Your Credit Score

Low credit score cannot prevent you from getting the best mortgage rates available in Canada. The minimum credit score required to obtain a mortgage is between 620 and 679. However, with a decent credit score of between 680 and 724 points, you may be able to obtain lower borrowing rates.

Even if you have a strong credit score, practicing solid financial practices can help you borrow more money.


  • Get Professional Advice About Mortgage Rates

A mortgage broker can assist first-time home buyers in navigating the complexity of mortgage programs, alternatives, and features. Buying your first house in Canada may cause you to worry about unforeseen expenses or overpaying for your purchase. 

You can learn more about the various mortgage features and options from an experienced mortgage broker in Abbotsford. Your financial conditions and future goals may help decide the mortgage option that is better for you. For instance, you need to decide:

  1. What type of mortgage you need—closed or open?
  2. What sort of mortgage rate to choose: fixed or variable?


  • Get Pre-approved For A Mortgage

It might be challenging to forecast whether mortgage rates will rise or fall in the coming time. While you’re still looking for your dream home, getting a pre-approved mortgage may shield you from the rising interest rates. You have up to 120 days to lock in a mortgage rate with a pre-approved mortgage. Obtaining pre-approval can help you in determining the amount you can afford to spend while buying your first home.


How Can A Mortgage Broker Help?

A mortgage can be obtained through a mortgage broker or your bank. Working with a broker who specializes in mortgages can provide you a number of benefits, including:

  • Secure a better rate with a mortgage broker than a bank
  • Mortgage brokers get wholesale rates from their lender network. 
  • Get to choose from a wider range of mortgage products.

A mortgage broker can also handle all aspects of the loan application process, including negotiating the interest rate and disbursing the funds. They serve as a single point of contact. All of this can make the process less stressful, particularly if you are planning to apply mortgage for the first time.

Satbir Bhullar is a leading mortgage broker in Abbotsford assisting first home buyers in obtaining an easy mortgage at a competitive interest rate. For more details, give us a call right away.