If you own your home in Brampton and are thinking about buying another home or refinancing; or you don’t own a home yet and simply want to purchase a home in Brampton, you may be starting to think about how you can get the lowest mortgage interest rate.
Your first thought may be to speak with your bank. While your bank may offer you a good deal, it still may not be the best mortgage interest rate with the best mortgage terms. Shopping around could be scary because the last thing you want to do if you are looking for a mortgage is rack up inquiries on your credit report which will drag down your credit score.
Also, going back to the idea of going to your bank as your first choice, well it may also just be a better idea to diversify your portfolio establishing relationships with different creditors. For example, if your bank account, RRSP, and mortgage are with different banks, you will have more borrowing power in the future as all three will know you. If you put all of your credit products in the same place, then only one financial institution will know you.
Your best bet is to look for a local mortgage broker. They will have access for mortgage interest rate information about all of the major banks as well as other lenders at the local level, like Trust Companies, Credit Unions, Mortgage Investment Corporations and more. They also have access to major banks that don’t have a retail presence like ING, PC Financial and some others that often offer lower mortgage interest rates than the major retail banks.
It doesn’t cost anything to speak with a mortgage broker about what’s available and in many cases, the bank or financial institution that you choose will cover the broker’s fee, so in most situations you don’t have to pay the mortgage broker anything!
What is important is that you do a lot of research because a home and mortgage is a huge financial undertaking. We are not talking about thousands of dollars here, we are talking about hundreds of thousands of dollars and even a 1% savings interest can make a substantial difference in your principal mortgage repayment and monthly mortgage payment. For more information visit www.gtamortgagematters.com.