Why You Should Always Compare Mortgage Rates

Shopping around for your mortgage can sometimes save you hundreds, if not thousands of dollars, and even the smallest of difference between interest rates can greatly alter your monthly mortgage payments. While comparing mortgage rates may seem like a time-wasting experience when all you want to do is find your dream home and buy it for the best price, if you work with an experienced and local mortgage broker, they’ll do all the searching and comparing for you, and could help your money go much further than if you simply settled for the first lender you come across.

So, if you’re thinking about buying a property in Canada, always take the time to research your mortgage options thoroughly. Below are 4 of the simplest ways to do so, and remember that if you’re conducting your own research, it’s important to have at least a basic understanding of the various types of mortgages and what their terms involve:

Use a Reputable Mortgage Broker

Because mortgage brokers work with multiple lenders and financial institutions, such as banks and credit unions, they have far more opportunity to find you a low rate and a mortgage deal that will help your money go much further. Sometimes, the deals that local brokers have access to aren’t even offered to consumers independently shopping for the best rate, so you might think you’re getting a great deal, when in reality, you could have saved even more money with a broker’s help.

It’s also worth noting that multiple credit checks necessary when shopping around for the best rate independently, can put a real dent in your credit score, while a broker can use just one credit check to give you access to a variety of lenders.

Brokers are compensated by lenders, meaning that their services are sometimes free, and they will help you complete your mortgage application, too.

Use An Online Mortgage Site

Nowadays, there are many online mortgage sites that can make the entire mortgage process far simpler, from preapproval to closing on your mortgage, and all from the comfort of your home.

Use A Bank

While shopping around for a lender is always advisable, it’s still possible that the best mortgage deal might be with a bank, so it pays to check with them for their promotional rates. If working with a broker, they’ll explore every mortgage option for you, including banks, and if doing it yourself, don’t forget to check digital banks, not just those that are bricks and mortar.

Credit Unions

If you already bank with a credit union, you can simply check their rates and compare it to other lenders.

No matter how much of a hurry you’re in to get your foot on the property ladder, you should always compare mortgage rates, and if working with an independent broker, you could find a deal that saves you thousands over the course of the mortgage.