Mortgage Teacher is known for finding Canadians the best mortgage to suit their needs.
When banks and lenders advertise the "Newest Lowest Rate," there are always very specific conditions associated with qualifying for that rate. It's like with any other advertised special where there are always some conditions that apply in the small print.
Some of the sacrifices you may need to make to qualify for these "lowest rate" mortgages could include:
- Restrictions for terms
- Hidden fees
- Payment limitations
- Limitations of special features
For example, see the chart below.
Swipe to view chart
|Scenario 1||Scenario 2||Difference|
|Exit Penalty||3 months||3% of balance|
|Monthly Payment||$1284.79||$1276.67||$8.12 ($487.20 over term)|
Mortgage Teacher can help you with mortgage rates
"Can you get me the lowest rate?"
This is often the first question our clients ask us and in most cases our answer is, "yes we can." But for most home buyers, the lowest mortgage rate isn't always the best rate. Discounted rates often come with too little flexibility or too many exemptions, which is why we work with you to find the best mortgage to suit your lifestyle and goals.
Mortgage rates in an evolving marketplace
Mortgage rates are adjusted against the bond rate. The rates can vary frequently based on everything from international monetary policy, political instability, the economy, inflation, and more. In most cases, they are predictable within a couple of months, but changes can also happen over night. It's our job to stay on top of the ever-changing market conditions and be your guide.
Questions Everyone Should Be Asking
Why should I shop before renewing my mortgage?
A mortgage renewal is the end of your term — for example, the end of your fixed five-year term. If you are not at the end of your mortgage term, then your mortgage is now open and it either needs to be renewed or newly placed.
It's beneficial to start inquiring on the new term 150 days, or about five months, before expiry. However, because your finances may have changed throughout your previous term, it's important to shop around different banks, credit unions, and other lenders to see what your best mortgage strategy is.
What do I need to know when selling my home?
It's important to know all possible costs and expenses when selling your home, since selling your house can affect the money you receive from the equity of your home.
We always suggest calculating all costs associated in a "worst case" scenario such as realtor fees, lawyer fees, and financing fees. This way, you will know your limits in case you need to lower your price or put less down on your next home purchase. You'll also avoid miscalculating the sale of your house, which could cause you to lose unexpected funds or even be forced into paying higher interest rates when you are planning on selling to buy another home. Mortgage Teacher helps calculate important numbers like your real estate fees, current mortgage balance, and what you can realistically sell your home for.
When do mortgage rates go up and down?
Variable mortgage rates are mostly reflective by commercial banks' prime rates, which are mainly influenced by the Bank of Canada's key interest rate. Therefore, when there is an increase in the key interest rate, it generally leads to a similar increase in variable mortgage rates. The main factor affecting fixed mortgage rates is Government of Canada bond yields. Fixed mortgage rates typically move in alignment with government bond yields of the same term. In other words, when bond yields increase, fixed rates increase, and when bond yields decrease, fixed rates decrease.
What's the difference between fixed and variable mortgage rates?
With a fixed rate mortgage, the mortgage rate and payment you make each month will stay constant for the term of your mortgage. With a variable rate mortgage, the mortgage rate will change with any change of the prime lending rate as set by your lender. Variable mortgages are deemed to be more risky because the monthly payments are not as predictable as fixed mortgages.
What is a posted mortgage rate?
The posted mortgage rate is the rate that the bank or lending institution promotes publicly. Most lenders have the option to offer lower rates than the posted rate to win your mortgage business. To get these lower rates, you either need to meet with your lender and negotiate for them, or reach out to a mortgage broker, like Mortgage Teacher, to negotiate the best rates on your behalf.