If you’re looking to secure one of the best mortgage rates possible, perhaps the smartest thing that you could do for yourself is to keep on top of all of the latest mortgage rate trends. Not only will this help you to learn more about the industry in general, but it’ll also make it possible for you to hammer out the best deal that your budget will allow. Because of the fact that any mortgage you pick is going to be with you for years to come, it would be a smart idea to make sure that you’re able to ascertain what trends are current, and what is now considered out-of-date.
There are three things going on across the Canadian mortgage industry that you should be aware of if you want to secure the best mortgage rates possible at some point in time.
- A Decrease in Variable Mortgage Plans
The average mortgage rates in Canada have been in a state of flux for a number of years. From 2011 to 2012, the number of Canadian home buyers that opted for a variable mortgage plan went down by 18%. Because of the fact that these types of mortgages are considered to be more of a risk, this is a trend that could easily continue into 2014 and beyond.
- An Increase in Mixed Rate Mortgages
During the same 2011 to 2012 time period, mixed rate mortgages grew from 7% to 11% of all those taken out by new borrowers. When something relatively new begins to grow, it’s probably a good idea for you as a prospective borrower to wonder what they might know that you don’t. If you’re looking for the lowest mortgage rates Canada banks and lenders can offer, a mixed rate mortgage could be a great place to start.
- The Average Lump Sum Payment
In 2012, approximately 875,000 mortgage holders across Canada made lump sum payments of $22,500 or more on the loan they were taking out. Putting down this much money up front allowed those borrowers to lower their overall payments. Depending on the income you take in, this could feel like a sizable amount of money. If you feel you couldn’t put down a big payment at present, you may want to wait another year and save up.
While the definition of the best mortgage rates will change from year to year, that doesn’t mean that you have to wait indefinitely to make a smart decision. On the contrary, the timing may never be better! As long as you keep up with all of the latest trends, you’ll be able to make sure that the mortgage you take out will never feel overwhelming. Read more like this: mortgagepal.ca