We’re always on the lookout for the best mortgage rates and terms as your mortgage broker Toronto. Given the pandemic, recently appointed Bank of Canada governor Tiff Macklem has even hinted at the possibility of negative interest rates.
Here’s what those kinds of low rates might mean to those of you who are looking for a mortgage.
For People Looking to Refinance
These are difficult economic times for millions of Canadians. If you’re looking to switch or refinance your mortgage these lower Bank of Canada numbers (currently 0.25%) are a good opportunity to find a lower rate at a financial institution.
Here’s a refinancing tip that will help you steer clear of trouble. It’s best to determine your goals before you start shopping for a new mortgage. For example, shortening the term of your loan is one of the things you can aim for. Of course, lowering your interest rate and corresponding monthly payments is another goal for many Canadians during these times.
You should also keep in mind that refinancing is about qualifying for a brand-new loan. That means you’ll need to have a good credit score in place and income stability. Lenders will still be watching to make sure you don’t present a big risk.
For Renters Looking to Break into the Market
With rates this low, it’s a good idea for people like renters looking to break into the market to consider some of the creative solutions available.
For example, you can look into the possibility of extending your amortization. By extending the amount of time it will take to pay your mortgage off, your monthly payments can be reduced.
We are always ready to help as your mortgage broker Toronto. Take a look at our team and then get in touch today.
