Bayfield Mortgage Professionals (BMP) Rates
As a home buyer, homeowner, or mortgage broker, you’re looking for the lowest interest rate possible for a mortgage. Many factors contribute to the interest rate for a particular mortgage holder, so not everyone gets the same rate. Even a fraction of a percentage point makes a difference to monthly payments and the overall interest paid over the life of the loan.
What Influences Your Mortgage Rate?
- Credit Score – Lenders use your credit score as your financial reputation. With a high credit score, there is a better chance you’ll make your payments on time. That makes you a better risk, so you’ll likely be offered a lower interest rate for your mortgage.
- Property Location – Some lenders vary the rates (slightly) for different urban and rural areas of BC, Alberta, and Manitoba.
- Purchase Price – Lenders may offer better interest rates for properties closer to the average value in that area.
- Down-Payment – The more you put down as an initial payment, the lower your interest rate. With a 5% down payment, you can expect a higher interest rate, and you’ll need to pay extra for the insurance for your high-ratio mortgage. Once you put 20% (or more) down, your mortgage rate improves, and your payments go down even more.
- Mortgage Term – Generally, a shorter term has a lower rate. It all depends on the forecast for the Bank of Canada rates but locking in for longer for the extra peace of mind will cost you more in the short term.
- Fixed Vs Variable Rates – Like locking in the term, locking in the rate means you are betting that mortgage rates will go up. If you think they’ll remain steady or go down, a variable-rate mortgage can give you more options. Most variable-rate mortgages allow you to fix the rate during the term but ask your mortgage broker to be sure.
- Mortgage Type – A first mortgage vs a second. A Home Equity Line of Credit (HELOC) vs a reverse mortgage. Every type of mortgage has specific terms that impact the rate. Ask your mortgage broker if a different type of loan could give you a lower rate.
The combination of these factors determines your interest rate. Everyone’s situation is different, so at Bayfield Mortgage Professionals, you’ll discover unique products with various rates suited to each client’s needs. If you have questions and would like to speak with a BMP representative, please contact us.
To get a rate quote from an accredited mortgage specialist, apply online using the convenient and secure Bayfield Mortgage Professionals online mortgage application.
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