Lots of web sites list what they call "Today's Best Rates." But at Lakeland Mortgage we'd rather not mislead you.
Mortgage rates change regularly, so you may see a rate advertised that's no longer available by the time you apply. What's more, certain rates are only available to clients with specific needs or credit qualifications. There's no way for you to know whether an advertised rate is what you'll end up getting.
Another consideration is that some mortgages with very low rates may not give you the options or flexibility you need. The only way we can accurately quote you the best rate is to do a free analysis of your situation, needs and goals. Then once we know exactly what's right for you, we'll shop the market and find you the best-available package of rates and features.
To get the latest rates just fill out the eform below and we will be in touch with you quickly! For any other questions, call us today.
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The new government rule changes have made finding the best mortgage rate not so straight forward. There is so much more to understand when looking for your best mortgage rate. In order to make an intelligent choice there are a list of questions that will help you find the best finance option for your needs. Government regulation changes have increased lenders’ costs and the lowest mortgage rates on refinancing, amortizations over 25 years, million-dollar properties, single-unit rental properties and mortgages where the loan-to-value ratio is between 65.1 and 80 percent. Now more than ever finding the best mortgage rate is not so simple. I have compiled a series of questions that will help you find the BEST mortgage option for your financial needs.
The mortgage contract term (length of the mortgage) and the rate type (fixed or variable) are usually the biggest factors impacting your rate. For example, the cheapest five-year fixed rate costs 50 basis points (bps*) more than the cheapest five-year variable rate.
* bps: 100 basis points equals one percentage point, therefore 47 bps equals 0.47 percent.
If this is a rental property and you don’t live there, you’ll pay up to 25 bps* more than if it were your primary residence. The cheapest rates are seldom available on second homes or unusual properties.
If you can’t, forget about the lowest rates. In most cases you’ll pay at least 150 bps* more.
If so, some lenders won’t even touch you. The ones who do will charge 50 to over 200 bps more than the lowest rate in the market.
The longer you want your rate guaranteed, the more you’ll pay. A 90 or 120 day rate hold typically costs at least 10 bps* more than a 30 day rate hold.
Some lenders now charge 10 bps* above their lowest rates if you want to prepay an extra 5 to 10 per cent on your mortgage. One of the country’s lowest rates currently allows no prepayments at all.
A refinance versus a purchase will cost you 15 to 50 bps more than the lowest market rate.
If you want the freedom to refinance early, some lenders will charge you 10 bps* more than their lowest rates for that privilege. If you want to cash out more than $200,000 in equity, you’ll often pay at least 15 bps* more than the cheapest market rates.
More than three-quarters of the fixed mortgages sold in this country do not have, “fair” penalties. In other words, if you break the mortgage contract early, you will often pay extremely high penalties. Some lenders offer both high and low-penalty options, with the low-penalty mortgages costing 10 bps* more. But even with that rate premium, you’d likely still pay less than if you broke a fixed mortgage with a high-penalty lender, like a major bank.
Many lenders, including big banks, are now charging 10 bps extra for amortizations over 25 years.
Today more than ever before lenders and mortgage brokers factor in more criteria when setting rates. Ottawa’s new mortgage rules have made factors such as amortization lengths, proof of income and credit history more important. The changed regulations have led some lenders to advertise as many as 10 different rates for a five-year fixed mortgage alone. So the next time you see a red-hot advertised rate know that it is bound to have stipulations, conditions or limitations and be ready to answer plenty of questions to qualify for that rate.