That is a question all of us asks to ourselves
This is the most common question everyone asks. The answer to this is not very straightforward. There are number of factors which influences your mortgage rate. Also the rates changes very frequently. Be aware of bait and switch. You must do a thorough research before you decide on the product you need, you want.
Jason Allen, Robert Clark and Jean-François Houde, of Bank of Canada recently published a study which discusses the same matter we are reporting in this article. According to that article there are several steps involved in-order to get a very good interest rate.
- Shop for better rates: This could be achieved by two ways,
- Contact a mortgage Broker. - To do a research by yourself is time consuming and tedious.
- Contact lenders to give you a quote. - If you choose to go the lengthy way.
- It is a good idea to have a mortgage default insurance - which assures the banks against any defaults anf gets you better rate.
- Having a good credit history is very important.
- If you are in high paying job then chances are that you would get a better interest rate.
- Depending on the amount borrowed the rates changes. Higher amount generally receives better rate.
- Always ask your existing bank. They tend to offer better interest rate to their existing clients.
- Try to avoid minimum down-payment. With a higher down payment you can have a better interest rate. At the same time too much down payment also reduces the chance of a better discount.
- New customers gets better rates.
- Smaller lenders often offers better rates.