Burlington Mortgage Rates Could be Rising
Mortgage interest rates have been holding steady at ultra-low levels for several years. The low mortgage rates have allowed many people to borrow money to purchase the home of their dreams, even as housing prices have skyrocketed. Many experts credit the rise in house prices, at least in part, to the availability of cheap mortgages.
However, in today’s economy, inflation is also rising. Everything from food to fuel and housing costs more. One of the tools that economists use to control inflation is to raise interest rates. Indeed, it seems clear that Canadian mortgage rates will be rising soon. If you are thinking of buying a home for the first time, you may want to lock in a mortgage pre-approval before new rates are announced. If you are renewing a mortgage, speak to your mortgage broker in Burlington to understand how an increase in mortgage rates could affect you. They can recommend the best type of mortgage to help insulate you from Burlington mortgage rate increases, as well as help you reach your goals for repayment.
Tips for Avoiding a High Risk Mortgage
Mortgages are evaluated based on the amount of your down payment or the amount of equity the borrower holds versus the outstanding mortgage loan amount. If this ratio of loan-to-value (LTV) is above 20%, then the mortgage is considered a high ratio mortgage. This is different from a high-risk mortgage, which may not have a high LTV, but the borrowers’ credit history or financial status is not ideal. The most significant factor affecting high risk mortgages is your credit score. Keeping your credit score healthy, in the ‘Good’ range or above, is essential if you are thinking about buying a home or moving.
Many people are not aware of their credit scores. However, if you are about to begin shopping for a mortgage, it is good practice to check your credit score first. If your score falls in a range that would make you a high risk to lenders, then think about taking some steps to correct it before you begin applying for mortgages. A mortgage broker can help you find your credit score and evaluate other criteria before applying for mortgages. Read tips on how to improve your credit score, along with other helpful tips on mortgages, on our blog.
Is an Investment Mortgage a Good Idea?
Real estate prices are high in the current market, but they show no signs of slowing down. Even with high prices, investment mortgage rates are still low, so real estate can still be a good investment, depending on your goals and what type of investment you are thinking of making. Purchasing an older home to renovate and resell can net you a large sum of money as a real estate investment. Especially if you can do some of the work yourself and can flip the home in a relatively short period of time.
Other real estate investments can include purchasing a property to rent. This type of property can provide a steady, long term income that you can use to pay off your investment mortgage. As an added bonus, the value of the home will also increase over time, providing you with more equity. Regardless of the type of real estate investment you are planning, enlist the help of a mortgage broker to match you with a lender offering low investment mortgage rates and excellent terms.
What’s the Easiest Way to Get a Mortgage?
Get the best mortgage rates in Burlington, Ontario by working with a mortgage broker. HW Advantage, led by mortgage professional Harrison White, can help you find the right mortgage at the best mortgage interest rates available. Harrison and the team can help you understand the process of getting a mortgage, even if it’s your first time. Find out how to get a mortgage that fits your financial situation now and your plans for the future. That could mean choosing an open or closed mortgage or even getting a second mortgage. Check out our blog for ways to prepare financially before you begin house hunting, then give HW Advantage a call at 905-541-6961 or fill out the form below to get started on your mortgage application.