Are you looking for a mortgage loan at a competitive rate? Our brokers at Multi-Prêts Hypothèques would love to assist you! Might you be wondering who to contact for the best mortgage rate? Look no further than a broker of Multi-Prêts Hypothèques’ Team Distinction! We have good news: as a creditworthy borrower, you have great leverage in negotiating the ideal financing conditions, including a lower mortgage rate. The difference is evident! Especially for a mortgage loan totalling hundreds of thousands of dollars, it’s worth it! With more than two decades of innovative experience, Multi-Prêts Hypothèques is a pillar in Quebec’s mortgage industry. Our team of brokers are on standby, ready to offer you personalized advice and service. Team Distinction would be proud to represent you throughout this transaction. Securing a competitive rate on your behalf is one of our various priorities, though our services go far beyond this aspect of financing. To explore what sets us apart, take a look at the chart below; illustrating the discrepancy between rates obtained by a Multi-Prêts broker versus those posted by major Canadian banks. Open or closed mortgage: which one is better for you? Open or closed mortgage: which one is better for you? Generally speaking, an open mortgage is costlier, because the borrower can pay it off in full at any time without incurring fees or penalties. Clients rarely opt for open mortgage loans, as the rates are significantly less competitive. However, an open loan is wise when you are in between contracts. For example, if your mortgage term has expired, temporarily, an open mortgage loan might be the perfect choice. Ultimately, you buy yourself time to consider various lenders, before signing a new closed contract, possibly with another lender. An open rate is also a good option when the term recently ended and the client intends to sell their property in the near future. Requesting an open loan in this situation is strategic, to avoid paying thousands in penalties, merely months later. This provides flexibility in managing your remaining balance and maximizing your real-estate investment, as you are not bound by a contract’s duration. You are also free to accelerate the amortization of your loan without incurring additional costs. This is a super option for someone intending to pay upwards of 20% of their loan early or if selling the property before end of the term is a possibility. In brief, it’s perfect for people who are “allergic” to commitment! Clients with closed mortgages are not afforded this same freedom. In closed contracts, the term is over several years. While an open mortgage typically varies from 6 months to 1 year, a closed mortgage varies from 6 months to 10 years in duration. The most common mortgage term is five years, for both fixed and variable rates. With a lower rate than the open mortgage, the closed mortgage is suitable if you are looking for more consistency in the amortization of your loan and if you are concerned about rate fluctuations (e.g. in the case of a 5-year fixed rate). As you can see, this is the choice of those who want a stable and predictable relationship. Whether open or closed, a mortgage can be a fixed rate. In this case, the interest rate remains unchanged for the duration of the contract. In other words, the monthly payments are unchanging, regardless of changes in the prime rate and market rates. In exchange for this stability, the fixed rate is generally higher than a variable rate. A variable interest rate is the opposite of a fixed rate (but you knew this!) The interest charged by lenders fluctuates according to the Bank of Canada’s Policy Interest Rate. Even after selecting a variable rate, you’re permitted to convert your loan to a fixed rate or adjusting your payments as needed. The amount of a home equity line of credit (HELOC) cannot exceed 65% of your home’s market value. A line of credit is an open loan; borrowers have great freedom with regards to their loan’s repayment. For lines of credit, the interest charged is calculated based on the amount of credit used. It is possible to only pay the month’s interest on this kind of loan. Lastly, the interest on a line of a mortgage varies according to market conditions. Notably, the line of credit’s interest rate is based on the lender’s prime rate, as are all variable rate mortgages. For mortgages, lenders usually offer clients a discount on the prime rate, whereas for lines of credit, lenders add a premium to the prime rate. In brief, the interest is always higher for lines of credit versus that of variable rate mortgages. Unless you live off grid or without Wi-Fi, you’ve likely noticed the real estate market has been anything but smooth sailing in recent years. In 2020 throughout the pandemic, Canadians borrowed an additional $108 billion in mortgage products. The trend continued into 2021, with $57.2 billion in mortgages taken out in the first quarter alone – a record! According to Statistics Canada’s annual report, 49 percent of mortgages were fixed-rate contracts with a five-year term. However, the government agency has noted a clear resurgence of interest in variable rate products, helped by a historically low policy rate. The variable rate hovered around 2.20 percent for five years until 2021, compared with an average of 2.38 percent for the fixed rate. What does the future hold? No one knows! However, Team Distinction brokers are constantly monitoring trends and acting in your best interest accordingly. The interest rate you are offered depends on several factors such as your repayment ability, down payment, credit rating, financial history and employment, among other things! In recent years, banks have introduced the concept of insured, insurable, and uninsurable loans. Insurable and insured loans will allow a better rate. To learn more about this topic, read our blog post. Timing is everything: if you shop ahead, you’ll gather essential information to best to compare and consider the current market’s offers. One thing is certain: having a professional with strong relationships with lenders is a mjor asset. Multi-Prêts Hypothèques’ brokers, especially those of Team Distinction, are at your service! Whatever your client profile, together we can develop a strategy to allow you to secure mortgage financing tailored to your needs. Thanks to the good relationships maintained by Multi-Prêts Hypothèques throughout the years, Team Distinction has the privilege of working with well-known and established financial partners, such as — Financière First National — Desjardins — Banque Scotia — Banque Nationale — TD Canada Trust — MCAP — Home Trust — Merix Financial – Lendwise — B2B Banque — Banque Équitable — Banque Manuvie — CMLS-Adapt — Banque HomeEquity — Pentor — Castleton — SimpliciT — Genworth Financial — CMHC – SCHL — FCT — FNF — Canada Guaranty The best mortgage rate with Multi-Prêts Hypothèques
The best mortgage rate
Multi-Prêts
The best rates on the market with Multi-Prêts Hypothèques
Open or closed?
Open or closed mortgage?
Rates
— Our financial partners
