In this government policy driven environment rates are not as easy to determine as they were, say, 2 years ago. There are so many factors now that come into play that it is important that who you are talking to, not only understands these factors, but can explain them in a way that makes sense to you.
Currently, and again based on government policy factors, there is a big difference from high ratio and conventional rates. High ratio means you are putting less than 20 percent down, and conventional means you are putting 20% or more down. High ratio mortgage money is in abundance and can be acquired in almost all cases at a cheaper rate than conventional money.
Why is this? High ratio money is CHMC, Genworth, or Canada Guarantee insured against any loss to the lender so it is favoured as an investment options when different lenders are investing into mortgage funds. This means you pay a premium that protects the lenders investment into your mortgage and they wont suffer any loss on their principle amount of investment. The down side of a high ratio mortgage is that you pay a premium that is included in your mortgage, and you can only be permitted a 25 year amortisation, or life of the mortgage, which can affect your borrowing power versus a conventional mortgage which allows you to do a 30 year amortisation.
Why is it important to know these things? Because they affect your borrowing power AND your rate.
The best way to get the best rate is to talk to our broker at Unify Financial to go over your application and find out who offers the best rate and options based on your wants, needs and future goals.
If you are getting rates off a website or off the cuff from a banker or broker without knowing your personal financial picture, then you are most likely going to be disappointed when rubber hits the road and you are half way through your transaction.
We are fully transparent and full disclosure as far as what you can expect, good and bad, so we can work together to get you the best possible outcome based on your financial picture.
Talk to us today to determine the right fit for you! At Unify Financial we take pride in the advice we give and the direction and advice we offer, even if its to point you right back to your current lender. We treat our clients the same way we expect to be treated when reviewing their wants, needs and future goals.