Vancouver Mortgage Rates: Here’s What You Need to Know
Are you thinking of diving into Vancouver’s scorching hot housing market? Even if you plan on living in the home that you purchase instead of renting it out, buying property in Vancouver is still an investment. When you find the best Vancouver mortgage rates, you’re able to save yourself money every single month.
Buying a home is a significant milestone and a massive step towards financial security. While renting offers a level of flexibility for someone who isn’t sure if they’re going to stay in Vancouver a few years from now, putting down roots and buying a home is an opportunity to create stability and consistency for many years to come.
By working with a well-connected and experienced mortgage broker, you’ll have access to the best rates, but there’s more to it than just interest rates…
Setting Yourself Up For Mortgage Success in Vancouver
Before you start shopping for a home, there are things that you can do to help ensure that you’re getting the very best rates in Vancouver. We’re more than just mortgage brokers. We will work with you – not only to purchase the best home you can afford – but also to secure your financial future.
Here are some steps you can take before buying a home to ensure that you’re in the best position possible.
Preparing Your Credit: Your credit score plays a significant role in the options you’ll have when it’s time to get a mortgage. Often enough, there will be errors on a credit report that have piled up over the years, especially if it’s not something that you’re actively keeping an eye on. These errors can be minor things, like incorrect employer info, or more significant, like negative items on your credit report that were added in error. Even if there are accurate blemishes, we can work with you to optimize your credit score to ensure that it’s as high as it should be. You can reach out to us for a consultation.
The Smith Manoeuvre: If you have a down payment of 20%, you’ll be able to use a strategy called The Smith Manoeuvre. In America, they can write off the interest paid on their mortgages, but in Canada, that’s not the case. The Smith Manoeuvre was created to offer a resourceful way for Canadian homeowners to grow their wealth while also gaining the tax advantages of using investment interest as an expense.
Researching and Understanding Your Options: With so many options to choose from, having an understanding of what you’re looking for both in terms of a mortgage and in terms of a home is something valuable that you can do right now. Think about which traits matter to you when looking at a home, which neighbourhoods appeal to you, and how much you can afford to spend. It’s not just about what you can afford to pay right now, but what you’ll be able to afford years from now, too, while saving yourself enough of a cushion in case you run into some difficult times.
Unique Access to Lenders: When you walk into a bank, you’ll have access to the specific mortgage products that this bank sells. You’re talking to one lender, and they set the terms. Far too many Canadian homebuyers just visit their home branch and take what they’re given. Instead, when you work with a mortgage broker like us, you’ll have access to a more extensive inventory of lenders, and we’ll navigate it for you to find the best mortgage for your needs. The best mortgage, that ends up costing you the least over time, isn’t necessarily going to be the mortgage with the lowest interest rates – there’s a lot more to the story!
Vancouver Mortgage Rates: The Whole Story
Beyond simply finding the lowest possible rate, there’s a lot more to consider that can save you money throughout the length of your mortgage.
The type of mortgage that you decide to apply for can play a significant role in how much flexibility that you have. This flexibility can save you a bundle when you’re able to adjust your mortgage to suit your needs later on. A lack of flexibility can save you money in the short term with lower rates, but it can end up acting as a prison that prevents you from having the freedom you need down the road. We want to help you make an informed decision based on your financial plans and goals.
Fixed-Rate Mortgages in Vancouver
There are fixed-rate mortgages where your interest rate is locked in. If interest rates rise in the future, this can be beneficial. On the other hand, if interest rates end up declining in the future, you’re still locked in at a higher rate. Fixed-rate mortgages also typically have slightly higher rates than a variable rate mortgage, so you’re paying a premium price to be locked into something more predictable.
Variable Rate Mortgages in Vancouver
A variable rate mortgage means that the interest rate is not fixed, and it can change over time. You’ll usually pay a slightly lower rate for this since you won’t have the same stability as a fixed-rate mortgage. If you aren’t on a very fixed budget, the savings can be worthwhile as long as you aren’t risking not meeting your monthly obligations if rates were to increase.
Bad Credit Mortgages in Vancouver
If you don’t have the best credit score, this doesn’t necessarily mean that you’ll never be able to purchase a home for yourself and your family, but it does make things trickier. Problems with your credit history can make it more difficult to find a mortgage lender, but it’s not impossible, especially when our team is by your side. We’ll help you to optimize your credit score, and then we’ll find a lender who understands your situation.
These alternative lenders can also be useful when you have a unique financial situation, for example, if you’re a small business owner who doesn’t always have a consistent paycheque, but who works hard to grow their business and has assets.
We’ll Help You Secure The Best Mortgage Rates and Terms For Your Needs
If you’re in Vancouver, we want to help you land your dream home by helping you to navigate the world of mortgage rates, terms, and lenders. We’ll figure out what you can afford, and which style of mortgage will be most beneficial for your unique situation. From there, we’ll find a lender who is eager to work with you, and you’ll be one step closer to finally getting your new set of keys.