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Obstacles to Your Best Mortgage Rate

June 28, 2017

With the best mortgage rates, comes great obstacles

While homebuyers are eager to find their best rates that best suits them, they can come across many obstacles that block their way. Even when you have chosen what term and rate type for your mortgage, you will notice that the percentage point can still vary. This is because of the many factors that keep you, the homebuyer, from getting the best rates.

Provincial varied rates

Each province has their own regulations when it comes to mortgage rates. For example, Ontario would be considered the most competitive in terms of rates since it has the greatest numbers of competitors. Quebec has some of the best 10 year rates while Manitoba has the best 6 month rates. People living in the East Coast or the Prairies are most likely to pay one-tenth to two-tenths of a percentage point more than homebuyers in Ontario. All these different changes in mortgage rates should be considered when figuring out the best rates in your province you desire to purchase in.



Finance purchases are a lender’s best friend. This means that lenders would rather give lower rates to mortgages from new homebuyers rather than mortgages that are considered for refinancing. While refinancing, which is practically a new mortgage, would grab lower rates than a mortgage transfer (switching lenders with the same key mortgage term).

Purchasing a condo, apartment or atypical property

Condominium mortgages usually have a higher rate in cities where the condo market is at high demand. This usually leads to arguably overextended prices. Other properties such as co-ops, cottages, former grow-ops, larger multi-unit residences and other non-standard structures are considered higher risks which result in a higher rate.

You do not plan to live in your purchased property

You won’t be able to find any low rates when it comes to purchasing a property you do not plan to live in. Many lenders and investors who see home-buyers purchasing properties intended for income-generating as a higher risk deal. With a higher risk, expect a higher interest rate.

Credit Score Check

The most common minimum credit score to qualify for the best rates would be considered around 680. Especially when you have a smaller down payment or a high debt ratio. There are also other things to consider other than the score. To be able to qualify for the best rates you must be able to show a clean two year track record that has no serious credit delinquencies.

There are numerous factors to consider before trying to grab the best rates. The best way to insure that you have dealt with every obstacle and have acknowledged all the risks is to contact us at MonsterMortgage.ca .