How To Get The Best Mortgage Rate

This Week's HOT TOPIC ... Getting the best rate


Ever wonder how your neighbour, colleague, or close friend got such a good deal on their new mortgage rate? Why they seem to get this fantastic rate that seems so much lower than any quote you got from your own bank?

In today's newsletter we are going to discuss five key ideas that you can implement in your mortgage shopping strategy so that you come out a winner. Yes, you too can have access to the lowest rates around.

Step 1 - Use a mortgage broker
No shock here. As most of our readers know we strongly believe in using your mortgage broker as a trusted resource. A broker can help reduce your time and energy spent on shopping for the best rate. Brokers have a good understanding of who is offering what rate. They can point out the lowest possible rate in the industry, but more importantly can also point out the pros and cons to that product.

Step 2 - Have good credit
It is important to have good credit when applying for a mortgage. Most of the posted rates you find on the internet are contingent on the applicant having a reasonable credit score. When applicants have less than average credit you may be looking at a higher rate than necessary.

Step 3 - Have a larger mortgage
When you approach a bank for a mortgage who do you think has a better chance at getting a better rate on the loan? Obviously a borrower with $300,000 in debt will fare better than some one looking to borrow $50,000. Bankers are more willing to let commissions go to lower your rate if they still stand to make money off your deal.

Step 4 - Bring additional business to the bank
Hey, if you are willing to roll your entire financial wealth over to one institution, then go for it. Just be aware that you are putting all your eggs in one basket. Some bankers, especially those on commission, will drool over the idea of gaining several accounts with one easy transaction, and may entice the representative to lower rates for you.

Step 5 - Use a smaller lender
Sometimes when approaching a big bank there is little to no wiggle room. They know that they can sit back and some one else is bound to walk through that door later today. Smaller lenders may not react the way. They deal on smaller volumes and tend to not want to let business go. Smaller lenders tend to give their best food forward upfront, no haggling necessary.


So if you are in the market for a new mortgage, and struggling to find the best rate out there, hopefully these five steps will help you. And if all else fails, come talk to us. Maybe what you are looking for isn't the cheapest product, but rather the best product for your financial needs.