How to Get the Best Mortgage Interest Rate

http://LeahCoss.ca
When you walk into a bank and you ask them to give you something. They're giving you there products. Each bank has a different product. And these products change on a daily basis these days. Rates change, the products change, the clients that they say yes to, the properties they say yes to, they change constantly. OK.
There is never a time where I can say yes everyday if you go to this lender they will always be the best lender. It does not work like that. It is a supply and demand thing. Things just changing in the market constantly. Competition, supply and that is how banks judge what products are going to be today, what the rates are going to be today.
Now how does this affect you and why can't you always get the best rate? Well, each product is different. I've mentioned this in many videos. Lexus and Toyota do not target the same people like wise banks do not target the same people either.
You just do not know that because they all look like they target everybody. Right? We're looking for you know smiley, happy people in our commercials to come and get their mortgages from us, not the case.
Here are some examples of situations that will effect whether you can get the best rate or not. First of all property. Where is the property? Is it somewhere rural, is it out in the boonies, is it in the city? Well for example, credit unions are great examples of this. Credit Unions will only fund properties that are within a location of one of their branches. Did you know that?
Not a lot of people do. So therefore location matters to them. And if you get a certain property in a certain area, they will not fund it. Likewise, with other banks going into other provinces or things like that.
They also do not just like land; many places do not want land, or places with homes that are deteriorating or things with more than two piping or previous row operations. All these things I've mentioned in other videos before. Each bank targets people differently and they won't do certain properties. So property is one of the things.
Secondly, credit score. What is your credit score. If your credit score is over 680 great. I can probably put with any lender based on that score. Is it under that score 680. well is it between 650 and 680? I can still go to most lenders. What if it is below 650, what if it is below 500? These are different levels, different tiers and again if a certain rate of 5% says you must have a 680B or above and you have less than 680. You now do not qualify for that best rate.
Kind of, catching on how this works? Again, self employed stated income programs not every bank does those. New immigrant programs you know each bank has their own niche. So, you are not always going to get the best rate depending on your situation.
So if you come to me, how it is I am going to get you the best rate? I am not; I am going to get you your best rate based on your situation. So what I will do I will go, "OK, what is the situation, what is the property, oh it is in the city. OK, well these credit unions are out, these lenders do not like it over there or whatever the case maybe."
Now I am left with this pile. From that pile, I am going to go, "Well I am using a stated income product. This person is self employed does not document a lot of income. OK well, that's more than half. Great now I'm left with this pile." Now I will look at this pile of lenders and I say who has the best rate? And from those lenders I place you with one of those.
There is things about that product you need to know about it. First of all, is it a fixed or variable? If it is fixed how long is it fixed? If it is variable how long is the variable? You probably did not know variable comes in terms did you.
Another thing to ask is what is the prepayment options? If you win the lottery there are some mortgages out there mostly the rates that are the lowest. You have no prepayment options. You cannot pay down any principle at any point. There are certain lenders out there that make a lot of money on those programs. OK?
So, prepayment options are something to ask. Is it transferable? How is there penalty calculated? These are things you need to ask because they will be important to you when it comes time to buy a new home or to refinance.

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[Purifiedinfire]

Today i was talking to a colleague about mortgages. They said a fixed open mortgage would have prepayment charges if switched out. I thought open mortgages didn't have prepayment charges. Is this true?

[MortgagesInVancouver]

@Purifiedinfire Fixed closed mortgages have penalties to get out of them. Open fixed mortgage do not but will probably have a $75 admin fee or something like that. You pay a higher rate for open mortgages which is why there are no penalties. Thanks for watching!

[bobby321456able]

do you only do mortgages in Canada? I am in NJ and you seem very helpful....

[MortgagesInVancouver]

@bobby321456able Thanks for watching! Unfortunately I am only able to be licensed in Canada. In fact, I think that each state in the US has it's own licensing requirements fo you may have to specifically find a Mortgage Broker who works in NJ.

Sorry I can't help. Good luck in your Purchase!

[Purifiedinfire]

@Purifiedinfire The part I forgot to mention is this co-worker is a branch manager. Must have been a long day for her, when I went to work she told me there were no fees.

[JPHET37]

She has a good point about buying your new home. What she means is do your home work first, ask! I hate bank lenders says you have a fair credit and your rate is this much. In order for you to make this affordable payments you must put down 3% or more depending on your credit history.

[ackilla86]

I didn't see that? @leighdeeming 

[leighdeeming]

Hmm you seem to be a little snooty about the whole thing.