Which Mortgage Should I Get?
September 28, 2021 | Posted by: Ron Chan
You’ve been paying close attention to the news about mortgage rates in Canada and real estate in Winnipeg Manitoba. You know that the Bank of Canada is holding their prime rate steady, and that they are maintaining the quantitive easing program through purchases on the bond market, which collectively have driven all forms of mortgage rates down to record lows. You’re also aware of the fact that inventory of available homes in the city is getting low. Your diligence in keeping informed has led you to one definitive conclusion - the time to get a mortgage is now. However, you’re unsure about which mortgage to get. Below are links to resources to help you make your decision.
Your Resource Guide to Deciding Which Type of Mortgage to Get When Buying a Home in Winnipeg Manitoba
Which Type of Mortgage Rate Option to Choose
Fixed, or a variable rate mortgage? This is the primary question that new buyers and investors have. Deciding upon which depends a variety of factors. We have already prepared an easy-to-digest resource guide for each so that you can make your decision, if ready to. Please reference the following:
Which Type of Mortgage Lender to Choose
Should you go to a traditional bank such as TD, RBC, CIBC, BMO, or Scotia Bank? Perhaps a credit union? While these are common options, you must be prepared to have your financial affairs in order, as they indeed look closely at your existing assets, income over the last two years, and importantly - your credit history and score. If these financials look good, these lenders will look favorable upon you. That said, it’s still important to work with a mortgage broker as they can get you access to lower unadvertised rates through common lenders, rates that are better than the ones typically offered. This is because reputable brokers will have longstanding relationships with the institutions, and therefore have access to “bulk discount” rates that an individual would not be able to get their hands on.
However, you may not find a bank or credit union option to be all that appealing, especially if you don’t have the credit history to back your financials. In this case you may instead consider alternative private lenders. View more on alternative private mortgage lenders, and how to find one near you.
What Length of Mortgage to Choose
The mortgage term is the length of time your mortgage contract is in effect, and can range from just 6-months to 5-years or longer. At the end of each term, you are required to renew your mortgage if you can’t pay-off the remaining balance, which is the typical scenario. You’ll most likely require multiple terms to repay your mortgage.
The length of your mortgage term has an impact on your interest rate (fixed or variable), the penalties you have to pay if you break your mortgage contract, and how soon you have to renew your mortgage agreement. There’s a lot to consider here. Reference the Government of Canada’s guide to mortgage terms and amortization, or simply contact us at 204.290,9950 very a much more succinct and easier to understand explanation. In doing that latter (calling us) you will also a receive a more customized (and FREE) consultation on this important matter.
Which Programs Should You Choose
There are a number of first time buyer incentive programs out there. This is great news, but it can also be confusing as you want to make sure that you need them before applying for one, and you must also ensure that you choose one (if applicable) most appropriate to your financial situation. These programs include the following:
- First-Time Home Buyer Incentive
- RRSP Home Buyer’s Plan
- First-Time Home Buyer Tax Credit
- GST/HST New Housing Rebate
- Green House Program
For more information on these first time buyer incentive programs, click here.
Let Winnipeg Mortgage Expert Ron Chan be Your Guide
All of the above served to help provide you with some insight into the matter. However, we know that you probably still have some questions. And you should, as purchasing a home is a very important life decision, perhaps the most important one that you will ever make. Why go at it alone? To take advantage of the “best case” scenario for each of your options above (whichever you feel is for you) you will need a partner at your side. Winnipeg mortgage expert Ron Chan will be able to guide you through the entire process, and after performing a deep assessment of your financial status, and most importantly your goals, can help you make a decision that works best for YOU and your household. Of course, you don’t need to lock-in to a thing at this time. It all begins with a friendly, noncommittal conversation.
Contact Ron Chan today at 204.290.9950 for a chat about what you want and need when it comes to home ownership.