Table of Contents
How to get a lower mortgage interest rate?
Step 1
- Contact a high volume mortgage broker, not a bank.
- Reason for contacting a broker is that we pull your credit only once and then shop around for rates for you. The high volume mortgage brokers get discount from the banks on rates. I am a high volume broker and will get you the lowest possible rates.
Step 2
- Fill out the application, we have an online application to help make this process faster and easier!
Step 3
- Send in requested documents
Step 4
- The mortgage broker will pre approve you to the maximum purchase price based on your income and debts.
Step 5
- Ask the mortgage broker about any promotional rates. Some banks will have rates that are good for only 30 days.
- I have a step by step guide on how to get a mortgage and how to buy real estate on the channel so please like and subscribe!
Step 6
- Our strategy for getting the best rate will be to first get you a firm pre approval. Many lenders will tell you, you are pre approved and then not have a written rate hold period. This is not the best way to get the lowest rate.
Step 7
- Only get pre approved with lenders that will let you lock in at a lower rate during the period between your pre approval and date of possession. I have one lender that will allow you to do this as many times as you want.
Example Scenario
January 1, you get pre approved at 5% for 90 day rate hold period until April 1. On February 1 there is a reduction to 4%, your broker (me) will lock you in for 4% for the next 90 days after February 1, so this will take you to May 1 with the 4% rate hold. April 30 there is another reduction to 3%. That will take you to July 30 with 3%. This is my personal strategy for getting you the lowest rate.How else can I get a lower rate?
- There is a type of mortgage called a stripped down mortgage, or no frills. It is usually lower than a regular mortgage. However this type of mortgage can have higher penalties and less flexibility
- Sometimes the variable rate can be lower than the fixed rates. If you know the rates are high and rates are most likely going down, you can go with a variable rate to “play” the market
- Manulife one is a mortgage type I have access to that can help you save on your overall interest that you pay on all loans. Please let me know if I can run a scenario for you about this and tell you how much I can save you.
Thanks for reading.
I am the easiest way to get approved. Call me anytime at 780-278-4847.
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Sean Rampersaud
Sean has been a mortgage broker in Canada for 17 years. We have helped countless amounts of clients achieve their mortgage goals!
Call me anytime at 780-278-4847