(NC)-More than half of Canadians polled last year said rate was the number one reason for choosing their mortgage provider, according to an Ipsos-Reid poll. Some Canadians feel they have to play the game of haggling for rates; but before you do, you should ask yourself if it's necessary to play this game to get a great rate. Consider the following items when shopping for a mortgage. These tips can keep you out of the game while remaining a winner in the end.
Shop for Rates Online - It sounds logical to shop around to determine who will give you their best rate. But do you feel that you have won if it takes you hours to get the best rate from the bank you have been with for years. Think twice about having to haggle. Direct or online banks are known for giving you their best rate upfront without haggling. This saves you time and money. All of the information you need is at your fingertips. You set the hours and have the convenience of applying on your own time. Understanding what you can afford and getting approved is fast and easy.
Stay Informed - Whether you're a new homebuyer or your mortgage is coming up for renewal, educate yourself on the interest rate environment. To help keep track, look for lenders that provide online newsletters or e-mail notifications whenever interest rates change. ING Direct's Interest Rate Monitor is one example.
Savings Beyond the Rate - Once you are familiar with the current rates and have decided whether you are more comfortable with a variable or fixed rate mortgage, look for a mortgage with the option to increase your regular payments and make lump sum payments throughout the year, not just on your mortgage anniversary date. Adding a few extra dollars onto some of your regular payments throughout the year or paying weekly can add up to big savings over the life of your mortgage.
Think Long Term - Consider a mortgage that will help you adjust to changes in your life. If you decide to sell your home, get a mortgage that enables you to either take your mortgage with you to your next home (port) or give your buyer the opportunity to take your mortgage over (assume) - penalty free, at your current rate, term and loan amount. And for when the unexpected happens, ensure your mortgage has the built-in flexibility for you to skip a payment at least once a year and pay it back when it's convenient for you, with no additional interest charges or fees.
With these tips in mind, you can be well on your way to finding a winning mortgage. For more ways to save on your mortgage, visit www.ingdirect.ca/en/mortgages.
- News Canada