Mortgage vs. HELOC
According to some Canadian real estate experts, Windsor is one of the most affordable cities to live in Canada while the major cities such as Vancouver and Toronto continue to be the most expensive. The average cost for a home in Windsor is $158,000 while the average home in Vancouver would cost close to a million dollars. A four-bedroom home in Toronto would cost $495,000 on average. The Canada Mortgage and Housing Corporation stated that there would continue to be high demand for housing in Windsor as the need for affordable housing continues among Canadians who feel priced out of the bigger cities.
When you are shopping for the best mortgage rates, you may wonder if a variable or a fixed rate mortgage is the best for you and here is how you can decide. With a variable interest rate mortgage you must have some risk tolerance in that you are comfortable with rate fluctuations. The overall savings you might obtain with the current rates available must be weighed against playing more should interest rates rise.
With a fixed rate mortgage the interest rate stays the same for the term so you know exactly what you have to pay and may budget accordingly.
It should be mentioned that even if you choose a variable rate, many lenders allow you to switch to a fixed rate should you want to lock in for the remainder of the term you agreed to.
While looking for the best mortgage rate, you should obtain a copy of your credit report and credit score. Try to get rid of any errors that are on the report by writing a letter to the appropriate credit bureau or agency. Pay down as many outstanding debts as possible. The higher your credit score is, the better your chances of getting a good mortgage rate. Meet with a reputable credit counsellor if you can afford it and find out how to best handle your debts.
It is also wise to spread your net when choosing a lender. There are several banks and financial companies to choose from. If you are not satisfied with the traditional banks, try the credit unions for comparison purposes.