Finding the right mortgage rate for your home purchase can be a difficult task, especially for first time buyers. Many people do not know where to begin, or how to go about finding the best possible rate for the home of their dreams. If you live in the Ottawa area, and are thinking about buying a home, or refinancing your current mortgage, there are some things you should know before settling on a mortgage rate. These tips can help you save money over time and ensure that you find the best loan payment options for your own personal needs.
How to Find the Best Rates in Ottawa, Ontario, Canada
There are many factors to consider before shopping around for the ideal mortgage rate. No matter if you are buying a home for the first time, or looking into refinancing, the following five steps will help you make a well-educated decision on what rate plan is the best choice for you and your family.
- Determine a baseline - Call up a recommended lender in your area and obtain information on each loan option that is available to you based on your credit score. This initial call can help you to learn more about financing, various loan terms, and programs so that you will have all the important details you need before contacting other lenders
- Contact various financial institutions - Interest rates rise and fall constantly, so it is a good idea to compare loan rates with other reliable sources before settling on the details from one particular lender. Consider visiting the banks in your area, even if you are not a regular customer, to learn more about what mortgage options they have available
- Decide when you want to close - The overall length of your lock-in period will have an impact on the rate of your mortgage. Discuss your target close date with each lender you speak with in order to determine the effect that it will have on your monthly payments
- Ask about fees - Each financial institution has their own individual fees that are charged along with the monthly mortgage payment. Some lenders may include their fees with the advertised rate while others do not, so it is important to find out all the details on fees from each mortgage lender you discuss rates with
- Contact lenders on the same day - Since mortgage rates fluctuate, you should attempt to call all the financial institutions you have in mind on the same day in order to compare the most recent rates. Calling all your potential lenders within the same time frame may allow you to take advantage of rates that have dropped from morning to afternoon
Ottawa Mortgage Rate Facts and Statistics
- April is the busiest month for mortgage applications with 11.5% of buyers applying at this time. The slowest month for applications occurs in the fourth quarter in December with 5.1%.
- 20.9% of potential buyers will search online for mortgage rates on Monday while only 9.0% will search on Saturday.
- The average annual gross income for mortgage applicants in Ottawa is around $65,000.
- The average age of mortgage applicants in Ottawa is 37.