Whatever your reasons are – here’s how you can get the best refinance mortgage rates:

Get youself ready:
One way to look at refinancing is to view it as buying your own home from yourself. In the process, you’re closing the old mortgage contract and creating a brand new mortgage – just like if you buy a new home. So when you go the lender, consider how they would view you as a potential buyer. They are going to look at your credit score and check if all your payments are up to date. And they’ll look at your income to make sure you can afford the new mortgage. They’ll check if anything has changed since you were last approved. Make sure your credit and financial life are in order to help you qualify for the best refinance mortgage rates.

Decide why you want to refinance:
Your lender is going to review your situation to try and determine why you are refinancing. They approved your original mortgage because they thought they would get their money back, with interest. Now they want to make sure it’s still a good decision for them to continue borrowing you money. The lender will have no problem giving you the best refinance mortgage rates if your reasons make sense, like if you want extra cash to build an addition to your home. Or if you want to consolidate some debt to take advantage of lower interest rates. But if your reason is that you’re having trouble keeping up financially and want to lower your monthly payments so you can buy a new sports car, well they probably wouldn’t like that. So take a good look at yourself from the lender’s perspective and ask yourself, would you borrow you money?

Apply for a new mortgage:
Once you have your financials in order, and can justify your reasons, you can confidently apply for a refinance mortgage. Your lender is in business to lend money. He wants to approve your application and give you the best refinance mortgage rates, so do everything you can to present yourself honestly and favourably to them. Your bank already approved you once, and as long as everything still looks good, they’ll have no problem approving you again.

Before you refinance, here are some other important things to consider:

Interest rate:
Refinance mortgage rates are the same as any other mortgage interest rates. Assuming your financial and credit situation has not deteriorated, the bank should still offer you the same rates as if you were buying a new home. If your financial and credit situation has deteriorated, however, you may be considered a riskier client to the bank and could be looking at higher interest rates. If your current mortgage is a fixed mortgage, you’ll want to check that the current interest rates aren’t too different from what they were originally. You might save money actually keeping your original mortgage.

Pre-payment penalties:
Depending on your original mortgage agreement, you may be subject to a pre-payment penalty for breaking the mortgage contract. This is included in the fine print of your original mortgage, so check into it before going too far. You may have to pay a large penalty and not come out any farther ahead. Often if you keep your refinance mortgage with the same lender they’ll waive the penalty (but check with them first).

Which lender do you choose?:
You don’t have to stick with the same lender when you refinance. If you find someone else offering excellent refinance mortgage rates, you might want to switch to save money. Talk to a Canadian mortgage broker to see who’s currently offering the best interest rates.

An Accredited Mortgage Professional is someone who is a member the Canadian Association of Accredited Mortgage Professionals. As the mortgage industry in Canada continues to evolve, it is important that people helping consumers with mortgages adhere to some level of quality standard, and so the association was formed.

It’s purpose is to ensure members are committed to the highest standards of industry performance through continuous education and ethical business practices. This helps consumers because they know they are dealing with someone who is competent, and wants to operate their business successfully with good service and high quality. The Accredited Mortgage Professional benefits as well because of the extra credibility they gain with clients.

The association sets a national standard for those dealing with mortgages. To avoid some of the pitfalls experienced in the U.S., where unscrupulous mortgage brokers contributed to the financial and housing meltdown in 2008 by arranging mortgages for people who couldn’t afford them, Accredited Mortgage Professionals must act ethically and professionally at all times, and continue learning to stay up to date with the industry. Those failing to do so will lose their membership privileges, which will have a huge negative effect on their business.

And it’s not only consumers that want to make sure they’re dealing with someone professional when financing their home. The lenders have a huge interest in dealing with professionals as well. Just think – they’re in the business of borrowing out money. They don’t want to waste their time with borrowers who don’t fit their lending criteria, and they want to make sure they can trust every mortgage application they receive.

Consumers and lenders can rest assured that when they’re dealing with an Accredited Mortgage Professional, they’re dealing with the best the Canadian mortgage industry has to offer.

What you’re actually doing with a refinance home mortgage is creating a brand new mortgage contract with different terms. When you originally bought your house, you set an amortization period for your loan, meaning you would pay it off in a pre-determined number years. The mortgage contract also states a term, which means how long you will be making payments at a certain interest rate amount.

For example, if you agree to pay a fixed interest rate of 4.0% for five years at a bank, with an amortization period of 25 years, that is the mortgage contract term you agreed to. At the end of those five years you would have to renegotiate a new interest rate. You can use the same lender, or because the mortgage contract is now expired, you can choose a different lender if they’re offering a better deal. you want. You would still have 20 years left to pay (original 25 years minus 5 years of payments). You can break the mortgage contract at any time before the term is up with a refinance home mortgage. But, be aware you may have to pay a penalty for breaking the contract.

If you are using a refinance home mortgage to take out some extra cash, the lender looks at what your home is worth right now. If you have paid off some of your debt, you can “re-borrow” the amount you have paid. If the value of your home has increased, you can also borrow extra money using a portion of the increased value as collateral. In either case, your new mortgage mortgage term is reset to any length you now agree to, the interest rate changes to whatever the latest rates are. The amount you have to pay back will be higher if you borrowed more money using your home equity.

If you are using a refinance home mortgage to lower your monthly payments, you have two options. If interest rates have dropped since your original mortgage, your payments will be less because you are paying less interest. If the interest rates are the same or higher, you can increase the amortization period to lower your payments. For example, if you have ten years left on your mortgage and owe $100,000, you can change the mortgage contract to pay back the $100,000 over twenty years.

Of course, if you increase your amortization period it will take you a lot longer to pay off your your home, but sometimes people are in a financial situation where they need that extra money every month. And that’s what a refinance home mortgage is for. Just put yourself in the lender’s shoes – instead of watching someone who is having trouble keeping up with their bills, why not change the mortgage terms? It actually helps lenders avoid problems like bankruptcy or foreclosure. After some time has passed the borrower may be in a better spot financially, and they can always use a refinance home mortgage again to decrease the amortization period if they want.

Thousands of people use a refinance home mortgage every year and change their mortgages to help themselves financially. Consult with a Canadian mortgage broker to see if it’s the right decision for you. Just be sure to check if your existing mortgage contract has any prepayment penalties so you won’t be surprised.

With this technique you’ll save thousand of dollars in interest, and you’ll also save a lot of time. For example, consider a mortgage with a 25 amortization. With normal monthly payments you would pay it off in 25 years. With a bi-weekly mortgage you would pay it off in less than 22 years. That’s over 3 years with no payments! When you’re just starting out it’s sometimes difficult to look that far ahead, especially if money is tight. But if you try to pay off your home as fast as you can, you’ll save a lot of money.

If you choose to take advantage of the benefits, make sure it is the accelerated bi-weekly where you are making a payment every two weeks. If you choose the bi-weekly where payments are made twice per month, you won’t experience the same benefits.

Keep in mind that there are always factors which can influence the life of your mortgage, such as changing interest rates, and whether you opt for a refinance home mortgage before your term is over.

Many people get paid every two weeks which makes a bi-weekly mortgage perfect for them, because then they make a mortgage payment every payday. Once people get used to the payment frequency they won’t notice the extra payments over the course of a year. But they will notice when they pay off their home faster.

The internet has transformed the way we do business, and people no longer have to rely on their local banks. The mortgage industry in Canada has changed. Instead of making an appointment at a bank, or a few of them if you’re shopping around, all you need to do is find one broker online and let them take care of everything for you.

Online mortgage brokers take your loan application information, and have relationships with multiple lenders across Canada that are offering good deals for your situation. They search multiple lenders and compare the terms and interest rates, then review the options with you and submit a mortgage application on your behalf.

Because online mortgage brokers send lenders a lot of business they are able to secure special interest rates to save you money. They are paid a comission by the lender only if the loan application is approved and financed, which means they have a big incentive to find you the best deal.

It’s easy finding online mortgage brokers by searching on the internet, and there are important things to consider before sending in your initial application (you can find more informaton here: Mortgage Broker Canada). Find a company you feel comfortable with then contact them and ask for a quote or pre-approval. If you are refinancing or renewing your mortgage, you can usually get a better deal than what your local bank is offering. And if you’re shopping for a new home, you can make offers confidently when you have a pre-approval because you know your application is already approved, and you know how much you can spend.

The entire loan process can take place without ever having to step foot inside a bank. All you really need is access to email, a printer, and a scanner so you can send any required documentation. You’ll still have to sign the application, but you can print it out and email it back to the lender. Any other documentation like pay stubs or bank statements can be emailed as well. There’s a good chance you might want to use the phone at some time too because it could help with some questions or parts of the loan application.

More and more Canadians are using the internet because it’s actually a lot easier than going into a bank, and it’s especially convenient because you won’t have to miss work for an appointment.

An easy mortgage process with online mortgage brokers is the way of the future.

Buying a New Home: Even people with credit problems can buy a new home, and a bad credit mortgage broker can guide you through the whole process. It’s not as easy as just finding information on the internet then going house shopping. You need someone who has experience dealing with people in bad credit situations to help you make sure the right paperwork is in order, and help find out what you can really afford. Depending on your situation, the interest rates will probably be higher than normal when you buy, and that will affect you maximum loan amount. If you’ve had credit problems, you need a bad credit mortgage broker to help you get back on track and into a new home. They have special contacts and access to lenders and can help you get a loan when the bank says ‘no’.

Keep Your Home: If you are currently experiencing credit problems, a bad credit mortgage broker may be able to help you keep your home. They can help you free up equity to help pay off other loans, or renew your mortgage terms to make it more affordable. As bad as things may currently appear, if you’re still in your own house, things could probably get a lot worse. A bad credit mortgage broker will use all their experience to help find a solution that can keep you in your home and save your credit.

Rebuild Your Credit: Having a good credit report is important if you want to borrow any money, and a bad credit mortgage broker can help you find a solution for your future. They can arrange affordable financing by renegotiating your interest rate, or extending the term, so you can keep up with your bills and rebuild your credit. They specialize in helping people with situations just like yours by showing exactly how to build and maintain a healthy credit report.

Lower Your Payments: If you’re having trouble keeping up with your bills and mortgage, a bad credit mortgage broker may be able to help you actually
lower your payments. They have have special access to lenders and can often refinance your mortgage. You can change the mortgage terms to make it more affordable, or free up extra cash so you can finally pay off those high interest credit cards.

Reduce Your Interest Rate: If you’re paying a high interest rate because of your credit rating, a bad credit mortgage broker may be able to arrange financing at a lower rate. They have industry contacts and access to lenders that specialize in bad credit mortgages, and can shop around on your behalf to help you find the best deal. If some time has passed since your took out a mortgage, you may be in a perfect situation to adjust the terms and get a lower interest rate. They can also review your credit report to help you take advantage of any recent good history. With a steady payment history, many people have unknowingly built up their credit to a point where they can save thousands of dollars in interest payments.

Your best solution is to talk to a bad credit mortgage broker and let them help you. Asking a few questions won’t cost you anything, and they would be more than happy to help you. Although the internet is great for research, you won’t find all the answers on your own. There is just too much information out there, not all of it is for Canadians, and there are a few tricks only an industry insider will know.

But which one should you choose?

First, you should deal with someone who is professional and gives you all the helpful information you need. The market for mortgage brokers in Canada is rapidly expanding, but Canadian consumers still aren’t using their services nearly as often as our U.S. neighbours. Because of this, you’ll probably find many mortgage brokers in Canada are new to the field even though they may have been working in the industry for a long time. You’ll want to find someone who is in it for the long term and takes time to explain things to you, and really cares about finding the right mortgage for you. These are the types of professionals you want to work with.

Second, mortgage brokers in Canada are usually affiliated with some sort of parent company, and you want to choose someone who has access to the best mortgage lending options and rates. Check out their websites to see which banks they deal with, and what types of mortgage rates they’re advertising. Not just the actual rate numbers, but what sort of flexibility they can offer. Maybe you want a really long term fixed rate, or a good open variable rate. The more banks they deal with usually means they can give you better options.

Third, mortgage brokers in Canada should be members of a reputable organization. The Canadian Association of Accredited Mortgage Professionals is, according to their website, “the voice of Canada’s mortgage industry”, and most mortgage brokers in Canada are members. You can find more information and check on membership status here.

You can use these tips to find a really good mortgage broker in Canada. Visit a few websites to get a feel for the companies, then talk to a few different brokers and just ask some simple questions. You will know very quickly who you want to work with.

When you’re searching for the best mortgage rates in Canada, you’ll find big differences depending on what type of borrower you are. The bank will either see you as a “perfect customer” and want to keep you by offering the best mortgage rate they can because they think there’s a really good chance you’ll pay them back. Or, they may see you as a “not-so-perfect customer” and need to charge a higher mortgage rate because they feel they’re taking a bigger risk lending you money.

The formulas used to calculate the best mortgage rates are virtually the same for all lenders across Canada. They use your current financial situation and past repayment history to try and predict their future profits.

For example, if you have a excellent credit report, have had a large and steady income for a few years, and you have a big down payment, the risk to the lender is potentially very low.

Your excellent credit report shows that in the past you’ve borrowed money and paid it back on time. If you do that long enough your credit score will increase. The lender views your proven history of repaying loans as a good sign that you can be trusted to repay their money.

If you’ve been fortunate enough to have a large income for the past few years there’s a good chance you will keep earning enough to repay the loan. Obviously, this is relative to to the size of your mortgage. The lenders want to feel comfortable that you have enough money to live your life and repay the loan.

And, if you have a large down payment, the lender knows you likely won’t stop making payments because you have a lot to lose. If you stop making payments the lender will foreclose on you to legally gain control of the property so it can be sold and they can get their money back. If you had a large down payment they know there’s enough equity to recover their losses.

So, the bank sees anything less than the “perfect customer” as a risk, and increases their best mortgage rates to offset that risk.

Now, do only the “perfect customers” get the best mortgage rates in Canada? If you don’t have a perfect credit report, the big income, or a huge down payment. What do you do?

To get the same best mortgage rates the “perfect customers” do you need to shop around. But… you need to do it a certain way.

Often the “perfect customers” are well educated in their financial dealings. They know their net worth, their assets & liabilities, and their credit score. And, they know what the best mortgage rates shoud be. They confidently shop around at different lenders because they know everyone desperately wants their business.

For everyone else, this is not the way to do it. Each time you go to a lender and fill out a loan application form they do a check to find your credit score. Most people don’t know this, but if you fill out multiple application forms and a credit check is done each time, your credit score can actually go down. Potential lenders also see the other credit checks, and may wonder why you’ve come to them. Why has every other lender turned you down? Are you a risk? Even if they borrow you money, they probably won’t want to give you the best mortgage rate.

Your best bet is to use a Canadian mortgage broker. You discuss your financial situation with them, fill out one application form, and they do one credit check. The mortgage broker takes your information and matches it with a lender that’s best for your situation, and gets you the best mortgage rates in Canada.

In fact, mortgage brokers can often get better mortgage rates than the bank branches offer their own clients. It could even be at a bank you’re already dealing with.

This happens because the banks pay the mortgage brokers a fee if they send you as a customer. It’s a win for the bank because they didn’t have to pay any marketing or administration fees to find you as a customer. And it’s a win for you because there’s a huge incentive for the broker to find you the best mortgage rates in Canada. If the broker doesn’t deliver, he doesn’t get paid.

As an average consumer, this is the best you can do to get the best mortgage rates in Canada:

So that’s it! That’s the secret to finding the best mortgage rates in Canada.