12 Secret Ways to Save Money On Your Next Edmonton Mortgage
Are you buying a home this year? Well we have gathered together the top 11 ways for you to save money on your next mortgage! Buying a home & Getting a mortgage is an extremely important step in your life. Why not take some extra steps to ensure you are saving the most money!
1. Use a mortgage broker. It’s very easy to get information from the internet, friends and family but not all mortgage rules and rates can apply to you-every mortgage is unique. By using a mortgage broker, you can utilize their ability to shop over 50+ Canadian banks to get you the lowest rate out there and only checking your credit once! Using a mortgage broker here in edmonton can give you an exact idea of what you can afford, Guarantee a rate and explain all the costs involved with the home buying process.
2. Put 20% Down!
Conventional Mortgages are a great way to save money long term. Your mortgage will be conventional if you are putting 20% Down or more. This means that you would not be paying the CMHC Insurer fee’s. These premiums can range anywhere from 2.80%-4.00% Of your loan amount. This will be dependent on how what your purchase price is and how much downpayment is being put down.
3. Shorten your amortization!
Amortization is usually set at 25 or 30 years, This is the total length of time it would take an average person to pay off their entire mortgage. By cutting it down to 15 or even 20 years, this can reduce the total amount of interest that you would normally with a 25 year amortization
4. Getting an inspection on your new home.
Once your financing is complete, it is highly recommended that you complete an inspection of your home with a qualified Inspector. This can range anywhere between $300-500. Although this may sound like a lot, this can save you THOUSANDS of dollars on any deficiencies, issues, mold and anything that could be wrong with the physical structure of the home.
5. Ask your realtor or mortgage broker for a referral for a Lawyer.
Realtors and mortgage brokers work with Law offices on a regular basis and have built strong relationships with real estate lawyers. In return, some lawyers can give a discount on legal fee’s for your mortgage closing process. Sometimes you can save anywhere between $200-$500 in legal expenses.
6. Using a realtor to purchase a new construction home.
This is a hidden tip that most buyers first or 2nd time around are not aware of. Visiting show homes is fun and exciting. You walk in and out a row of them and check out samples of what your new home could look like. What most buyers don’t know, is that By using a realtor to purchase a home through a builder can save you tons of money!! Show homes usually have the price advertised and most buyers walk in, get excited after walking in and have NO representation to assist in the negotiation. So most buyers end up paying whatever the actual purchase price is and are unaware that there is always room to negotiate. SO the next time you check out a show home, USE A REALTOR! Realtors do not charge fees for buyers so having the real estate agents represent you help in the negotiation and also are on your side when it comes to the fine print when having an agreement with a builder.
7. Get Title Insurance.
This will protect you from any surprise and unpleasant revelations about your property’s history that could arise in the future. This would be obtained through your lawyer at closing and can cost anywhere between $200-250.
8. Are you an Alumni from a local Edmonton College or University?
Ask me for information in regards to First Time home buyers who have recently graduated from Post Secondary Education. We provide discounted mortgage rates that can save you money on interest throughout the term of your mortgage
9. Get referred to an appraiser.
Sometimes your mortgage may require an appraisal to be completed. The best way to save money on an appraisal is to ensure your financing is 99% Complete. If for any reason your income or downpayment does not get approved, your appraisal should be the last thing you check off of your financing list to ensure you are not our of pocket for the cost of the appraisal. So before you go ahead and pay for an appraisal, ensure your income & downpayment and all other conditions have been met.
10. Get a rate hold
Securing your mortgage rate up to 4 months! By getting pre-approved and securing your mortgage rate prior to purchasing a home, can save you hundreds of dollars. Here in Edmonton, the housing market is constantly changing-and along with that so are rates. So by speaking to us, you can secure a low rate for up to 4 months to ensure that if you are planning on buying the next few months, whatever may happen to the market, you can feel safe that your rate is lower than what the rate could be 4 months from now.
11.Keep your debt load low
If you are planning on purchasing a home in the future, keep your monthly debt loads low. Try to pay off your highest interest balances first. By doing this, you have a higher chance of qualifying for a LOWER mortgage rate. Sometimes if you carry a high debt load balance, your mortgage can still get approved but your mortgage rate may not be the lowest due to the HIGH credit card, line of credit and loan payments.
12. Make Bi-Weekly Payments
Making bi-weekly payments will help you make and extra couple of payments per year resulting in you paying down the mortgage faster!
Common Mortgage Related Questions
What banks have the best mortgage rates in Edmonton?
Different banks run promotions at different times depending on if they are hitting their annual targets or not. At every time of year different banks and financial intstitutions will run promo’s on their rates.
If you are looking to find out who is having a promo give us a call at 780-238-2957, we can let you know. Often times it may not even be a bank, it could be a mortgage financial institution. We can let you know. Saving on the rate means saving thousands of dollars on you mortgage!
2. How much do I have to pay to use a mortgage broker in Edmonton?
Most mortgage brokers charge nothing for a regular transaction.
We are paid by the banks, and the best part is we can get you a better rate than your bank can!
4. Can mortgage brokers in Edmonton get lower rates than banks?
Yes, often times we can get much better rates than the banks. We send millions of dollars worth of transactions per month to them and they give us a discount on the rates.
5. How can I get the best mortgage rate in Edmonton?
Call us and let us shop around for you, we guarantee the lowest rate!
The just of it is, our brokerage is the largest mortgage brokerage in Edmonton. Combined they send millions of dollars worth of transactions to multiple banks every month. These banks fight for our business by offering us special rates.
6. How can a mortgage broker get me a lower interest rate in Edmonton?
Mortgage brokers pit the banks against each other to earn your business. A good broker will send your application out to many different banks and then get them to offer you a rate.
Your rate will depend on how great of a client you are. What is your credit like? How is your job stability? These are all things the banks will be looking for.
Buying a home is one of the most important and significant financial transactions you can make. Don’t do it alone, Contact me for your mortgage approval process and let me help you go through the process together. I can share my experience and knowledge that i have gained from the last 10 years in this role, and ensure i am there every step of the way.
Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”