If you’re in the market for a home, your timing couldn’t be better. Mortgage rates are at record lows, and experts say this is the perfect opportunity to lock in a loan at a great price.
And if you’re already a homeowner, refinancing your mortgage at one of today’s bargain rates could save you thousands of dollars a year (so long as you can lower your rate enough to offset the fees).
But these ultra-low mortgage rates won’t last forever, so if you’ve been thinking about buying or refinancing you should snatch up a cheap rate now — before it’s too late.
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, multiple banks are offering mortgages below the 2% threshold.
Although it might seem like a good idea to wait to see if rates drop even lower, trying to “time the market” could cost you big-time.
Mortgage rates are still hovering around rock bottom, but it’s impossible to predict how long that will last.
So don’t sleep on a chance to grab a low rate now while you still can.
Here’s how to find the best rate
With rates so low you might be tempted to jump at the first offer you see, but to take full advantage of the current market you need to shop around.
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 options, according to a 2018 study. By not shopping around for rates, you could be wasting thousands of dollars a year on your mortgage payments.
If you don't have time to hunt for the best mortgage yourself, get Homewise to work the market for you. This online brokerage will negotiate on your behalf with more than 30 big banks and other lenders, completely free, and it only takes five minutes to apply.