The waiting game could cost you
In June, the rate for a five-year fixed mortgage dropped below 2% for the first time in Canadian history. Now just a few months later, some banks are offering mortgages as low as 1.64%.
Although it might seem like a good idea to wait to see if rates drop even lower, trying to “time the market” is a risky move.
It’s impossible to predict how long these rock bottom rates will last, and waiting even a day too long could cause you to miss out.
So don’t sleep on the chance to grab a low rate now before they creep back up.
Here’s how to find the best rate
Although you might be tempted to jump at the first low rate you see, you'll need to shop around if you want to take full advantage of the current market.
Whether you’re buying or refinancing, you should compare offers from at least three mortgage lenders before you lock in a rate.
Only 50% of mortgage holders in Canada bother shopping around for different quotes, according to a 2018 study. But neglecting to compare rates could cost you thousands of dollars a year on your mortgage payments.
If you don't have time to hunt for the best mortgage yourself, get an online brokerage like Homewise to do the legwork for you.
Homewise will negotiate on your behalf with more than 30 big banks and other lenders. It's completely free, and it only takes five minutes to apply.
