How To Find The Best Mortgage Rates In Canada

By Author: Ratesheet Canada
Total Articles: 1
Comment this article

Every person has a dream of owning a home. The challenge is how to acquire one. Through mortgages, it is now possible to own a dream home. Before we even delve into a discussion on finding the best mortgage rates Canada, it is impertinent to understand the salient features of a mortgage or charge.

Every person has a dream of owning a home. The challenge is how to acquire one. Through mortgages, it is now possible to own a dream home. Before we even delve into a discussion on finding the best mortgage rates Canada, it is impertinent to understand the salient features of a mortgage or charge. What is a mortgage?

Simply defined, mortgages or charges are securities in exchange for monetary advances or loans from financial institutions. The lending institution is referred to as the ‘Mortgagee’ while the borrower is referred to as the ‘Mortgagor.’ As you should know, the banks do not award the loans without charging an interest. Financial institutions make profits through interests on the loans. Mortgage rates should thus be taken to mean the rates of interest charged on the principal loan advanced.

From ...
... the foregoing therefore, what is the criterion to be employed in the search for the best mortgage rates?

First, you need to identify a house which you can afford. Inasmuch as you intend to finance your house through a loan, you don’t have a ‘blank cheque’ on which you can write any figure you want. You need to seriously consider whether you will be able to service your loan comfortably. Point to note here is that in the event that you fail to meet your financial obligations, you risk losing your entire property. Banks at times ‘bank’ on defaulters to make profits - it is an open secret. So, don’t allow a foreclosure and sale on your property by buying a house you can’t afford.

After identifying a house that is affordable to you, the next step is to compare mortgage rates in Canada. You can either decide to seek professional services - at a fee of course - or do your own research. Research can be done by making enquiries concerning the mortgage rates Canada directly from the banks or enquiring from professionals, friends or acquaintances. You can even use the internet to obtain information on the best Mortgage rates. ‘Googling’ the words “best mortgage rates Ontario” should leave you spoilt for choice concerning the site to visit. But all in all, settle for the most credible online firms to furnish you with information on mortgage rates Canada.

Third, you must seek independent legal advice. And this is no choice really. In the landmark case of Barclays Bank Plc Vs Obrien (1933) UKHL 6, the House of Lords held that if a mortgagor fails to obtain independent legal advice, then the mortgage would be void. This principle is applied not only in common law jurisdictions but in other jurisdictions as well. So point is, ensure you obtain independent legal advice before you enter into any agreement with the lender. The key word here is “independent.” Advice from the bank’s lawyers will certainly fail to meet this threshold.

You also need to ensure that you have all your financial paper work ready as you begin the process of finding the best mortgage rates Ontario. This list is not exhaustive. It should however come in handy to help you settle for the best mortgage rates in Canada.
Resource: http://www.ratesheet.ca