Canadians like to hunt for bargains, but too many people don’t invest the time and effort into finding the best Red Deer mortgage rate. In fact, an HSBC survey found that Canadians came in tenth in an international survey of home buyers, since most home buyers didn’t search for the best mortgage rates. That’s a problem given how much you’ll save over a lifetime if you save a few points on a mortgage relative to a couple hundred saved on a car. Here are our tips for getting the best Red Deer mortgage rate.
Compare Rates via Online Tools 
Instead of assuming you have to choose from the two or three loans your bank or credit union offers, compare mortgage rates via online tools that pull from a variety of sources. You would enter your basic information and information about the loan like the size of the loan and down payment. Then you’ll see a list of mortgages you’d probably qualify for. Another benefit of these online tools is the ability to play with the numbers. You could see how the loan terms change if you put a little more money down or you paid more in points and fees up front. You could calculate how much more you’d pay over the life of the loan if you chose a longer loan term.
Some of the best loans are only available through the mortgage brokers who host the interest rate comparison website.
Contact a Mortgage Broker
One way to get the best interest rate is to contact a Red Deer mortgage broker. Mortgage brokers generally work with several lenders. They receive discounts from the lenders due to the sheer volume of business they send to their lenders. This allows them to pass part of the savings on to their customers. Mortgage brokers also work with a wider network of lenders than your bank would. They know lenders who will offer competitive interest rates to someone with less than perfect credit or for properties other than the suburban single family home they could flip immediately if you miss a payment. Whether it is a serious fixer-upper, rural home or unconventional home that lacks general appeal, they’ll know lenders willing to give you reasonable loan terms.
Negotiate with Your Bank
Too many people fail to realize you can negotiate with your bank. Your mortgage is an incredibly large and valuable deal. You may be able to negotiate better loan terms or a lower interest rate. This is especially true if you have information from a rate comparison website to back up your demand for a lower interest rate. Avoid approaching too many lenders with this information, since repeated credit inquiries could hurt your credit. You may be asked to prove that you could actually qualify for the loan. Be willing and able to argue why you should receive a better offer. Ask what you could do to qualify for better terms, whether it is paying down your credit card debt or getting a larger down payment.
Call Jodi Whalen with Red Deer’s Whalen Mortgages today to get the best rates in Red Deer
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