What will my interest rate be?
Castle Mortgage is committed to giving you the best information possible and advertising accurate mortgage interest rates online is nearly impossible. Here’s why:
Interest rates are a commonly misunderstood piece of your mortgage puzzle. They are affected by conditions that are changing all the time, such as:
- personal credit
- location of property
- type of property (owner occupied, rental, second property or vacation)
- down payment amount
- and more…
When it comes to down payments for mortgages in Canada, there is a three-tier pricing system for mortgage interest rates that is rarely understood:
- less than 20% down = best interest rates available
- exactly 20% down = different interest rate
- over 25% down = interest rates vary depending on how much over
The Canadian government also requires a “mortgage stress test”, where you have to qualify at 2% above the current interest rate you qualify for. This is almost never offered or fully explained anywhere online.
“But I can find interest rates advertised online.” Yes, there are several different sources to find mortgage interest rates online. Banks, credit unions, and rate websites all publish interest rates online that may be more attractive than what the average consumer can achieve. These low rates are often drawn from national data and may not be reasonably applied to your area. They are impersonal pushes to get you to contact the lender only to find out in many cases, that those rates either are not available in your area or in your particular situation. In addition, those advertised rates may be subject to restrictions or they may be stripped down versions of otherwise fully featured mortgage products. Common limitations would include things like large penalties, limited prepayment terms or sale only clauses.
The most accurate interest rate is determined in real time with a qualified broker at the mortgage firm or institution you're planning to go with. This means a telephone or in-person meeting is almost always necessary to determine what rate is actually available based on each person’s individual circumstances. Reaching out and asking will never lock you in – we want to provide this information so you can meet your property ownership goals securely.
Without an accurate interest rate estimate, your ability to plan your financing could be compromised. In other words, calculating your own mortgage payments using any low interest rates found online puts you at risk of getting your hopes up and being delayed by poor planning. You might be working toward a certain financial goal and still miss the mark, because the numbers weren't even going to work in the first place.
We don’t make false promises; we provide the real options available so you can succeed.
Contact us for a chat about the best mortgage interest rates available to you today.