How Working With a Mississauga Mortgage Broker Can Get You The Best Canadian Mortgage Interest Rates

One of the first things that many people think about when they are applying for a mortgage is the current interest rate and how it will affect their monthly payment, as well as how much money they will end up spending over time. Although interest is avoidable if you are able to buy your house outright, most of us are unable to do this and interest becomes a necessary evil, one that can’t be avoided. However, by working with a Mississauga mortgage broker, you have a chance to save yourself on interest by obtaining the best Canadian mortgage interest rates possible – all while maintaining a good credit score.

Since a credit check is unavoidable when going for mortgage approval – indeed it is often the first thing a mortgage broker will ask to see – making sure that these checks don’t harm your credit is very important. Rather than going from bank to bank to find out the best Canadian mortgage interest rates and applying to see if you qualify, which will result in numerous credit checks thereby negatively impacting your credit score, working with a Mississauga mortgage broker allows you to research various different lenders for the best Canadian mortgage interest rates all using the same credit check.

So how does a Mississauga mortgage broker help you save on interest? There are a few important things to keep in mind.

As mentioned, a Mississauga mortgage broker has the ability to check with a number of different lenders to find the best Canadian mortgage interest rates for you. Instead of going from bank to bank, which will often only give you access to one or two interest rates, a Mississauga mortgage broker with access to multiple lenders can do the research for you and go to the different banks and private lenders to find you the best Canadian mortgage interest rates out there.

Another way to save on mortgage interest is by having your Mississauga mortgage broker search out a mortgage with adjustable rate mortgage interest. If you are willing to take a bit of risk, you can reap great rewards. What is a mortgage with adjustable rate mortgage interest? An adjustable rate mortgage is a type of mortgage in which the interest rate changes to reflect changing interest rates. Typically the rate is set for a specific period of time for the beginning of the mortgage, and then changes (either increasing or decreasing) as Canadian mortgage interest rates change. This can end up saving you thousands on interest because if the interest rates go down, you are not stuck with a rate that is higher – as would be the case with a fixed rate mortgage. Additionally, the interest rate on an adjustable rate mortgage is already lower than a fixed rate mortgage because of the risk involved.

Instead of going from bank to bank, which can negatively impact your credit score while only giving you a few different rates, working with a Mississauga mortgage broker can give you the freedom to look at many different Canadian mortgage interest rates while still keeping your credit in check.

For more information about Mississauga mortgage brokers and how they can help you get the best Canadian mortgage interest rates, please contact Paul Mangion of The Mortgage Centre at 416-204-0156 or visit www.themortgagecentretoronto.com

Canadian Mortgage Interest Rates, Going Up or Down?

It appears as though there is constant speculation as to whether Canadian interest rates will go up or down. Interest rates have been low for so long and many consumers have been taking advantage of low interest variable rate mortgages.

Canadian interest rates were originally reduced to historic lows after the attacks on the World Trade Centre in 2001. Into the mid 2000’s, the Bank of Canada began to inch interest rates upwards, but the recession that began in 2008 forced the Bank of Canada to bring the national lending rate back down.

They have remained low for the past 3 years, however in the past the Bank of Canada has raised interest rates 3 times.

When the Bank of Canada begins inching up interest rates, those who have variable rate mortgages begin to question whether or not it might be time to lock in.

A variable rate mortgage is one that floats with prime. If interest rates go up, so will the interest rate on a variable rate mortgage and in accordance so will the monthly mortgage payments. Many folks who have low interest variable rate mortgages will closely monitor the Bank of Canada’s announcements. This is because many variable rate mortgage products carry an option to lock-in.

This is one reason why we often write about the topic of whether or not Canadian interest rates will stay low or go up.

If you want to determine whether or not interest rates may go up, rather than paying attention to the Bank of Canada, pay attention to the strength of the Canadian dollar. A large part of Canada’s economy and Ontario’s economy is tied to the manufacturing sector. We export a lot of products. However, when our dollar is strong it makes it more expensive for other countries to trade with us.

Compared to the currency from other countries we currently have a strong Canadian dollar, and this is due to Canada’s strong bank system. Economic instability in countries around the world will only continue to strengthen our dollar. While Standard and Poor's recently announced that it was downgrading the U.S.’s world credit score from AAA to AA, it has been announced that Canada will continue to maintain its AAA world credit score status. This is yet another indicator that our dollar will continue to soar.

Unfortunately this also means that we could lose a lot of jobs in the Canadian and Ontario manufacturing sectors. This reason alone may be one reason that the Bank of Canada decides to leave interest rates where they are (as they did in their most recent interest rate announcements) or even lower it. There are other economic indicators that the Canadian mortgage interest rates will continue to stay low, therefore now is a better time than ever to take advantage of a low interest variable rate mortgage.


For more information about Canadian mortgage interest rates please visit http://www.gtamortgagematters.com/