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Canadian Mortgage Rates
In today’s market, renters and even homeowners in Canada are seized
by the desire to save enough funds for down payments. The reason is
simple. Canadian mortgage rates are going down and real estate prices
are in full swing.
To cover the heavy demand for more mortgages, lenders have adapted
flexible techniques, like lowering down their Canadian mortgage rates
and coming up with new products all the time.
A traditional Canadian mortgage rate would be a loan requiring the
buyer to put down 20 per cent of the property’s value in cash. Such
a Canadian mortgage rate requires a big amount of money but the benefits
are great.
Look around for low Canadian mortgage rates
Shopping around the Canadian mortgage rate market can cut down your
down payment costs. With a little research, buyers can even access
the posted Canadian mortgage rates and interest rates of large banks
and get them for less, about one percentage point or sometimes more.
For instance, the Canadian brokering company in Montreal, Multi-Prets
Hypotheques is currently offering their customers a five-year Canadian
mortgage rate of 5.1 per cent. This is low compared to other banks
posted Canadian mortgage rate of 6.5 per cent. This allows consumers
to save thousands of dollars in Canadian mortgage rates and interest
rates alone over the life of their loan.
Lower down Canadian mortgage rate with CMHC loans
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"No man's fortune can be an end worthy of his being.”
- Francis Bacon
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Another way to lower down Canadian mortgage rates and minimize the
amount of cash you put down is to get a Canada Mortgage and Housing
Corporation (CMHC) insured mortgage. A CMHC-insured mortgage can reduce
the Canadian mortgage rate and down payment to 5 per cent. That Canadian
mortgage rate is 20 per cent lower than traditional mortgage loans.
With a CMHC-insured mortgage, you get a loan that is like most other
loans except that you get insurance from CMHC on the additional loan
amount, which is the difference between the traditional 25 per cent
Canadian mortgage rate and the actual payment you put down. Getting
a CMHC insurance involves only a one-time payment with Canadian mortgage
rates varying between 1 per cent and 3.25 per cent of the total loan,
depending on the amount of cash put down.
Low Canadian mortgage rates with non-standard mortgages
Reducing your Canadian mortgage rate can also be achieved by opting
for non-standard mortgages. Aggressive financial market players like
Toronto’s Xceed Mortgage Corporation offer incredibly low Canadian
mortgage rates and minimum down payments.
Getting a non-standard mortgage is perfect for people who have large
earning powers but few capital resources. Because they have few assets
to back them up, lenders might up their Canadian mortgage rates when
they apply for loans. For instance, an entrepreneur whose assets are
mainly invested in her business wants to apply for a loan. Her chances
of a getting a low Canadian mortgage rate for a traditional loan is
less compared to getting a reduced Canadian mortgage rate from a non-standard
mortgage.
Lenders of non-standard loans will cover the entire purchase price
of your house, leaving you to save a lot on high Canadian mortgage
rates and a large down payment. However, lenders will only provide
financial backing if your total monthly financial commitments (debt,
interest, taxes, etc.) are no higher than 40 per cent of your monthly
income.
Additional Resources and Latest News:
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Canadian Housing Market Collapse: Part IISeeking AlphaAnother difference between Canada and the USA is that you can't get a 30 year fixed rate mortgage in Canada, but you can in the USA. Canadians have to use ARMs (adjustable rate mortgages), or a maximum of 10-year fixed rate, but most Canadians use ...and more » |
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Canada's housing market Look out belowThe EconomistIn response to America's slow economic recovery and uncertainty in Europe, the Bank of Canada has kept interest rates at record lows. Five-year fixed-rate mortgages now charge interest of just 2.99%. In response, Canadians have sought ever-bigger loans ...and more » |
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