Are you looking for a mortgage with an advantageous rate? Our brokers at Multi-Prêts are here to assist you! Wondering who to contact to find the best mortgage rate? A broker from the Distinction team at Multi-Prêts, of course! If you’re a creditworthy borrower, we have good news: you have a favorable position to negotiate advantageous financing terms, including lower mortgage rates. The difference is evident! Especially for a mortgage loan totalling hundreds of thousands of dollars, it’s worth it! After more than three decades of innovation in mortgage brokerage, Multi-Prêts Mortgages has become a leading reference in Quebec. Its teams of brokers are at your service, offering guidance and personalized advice. The Distinction team is proud to uphold this noble mission! 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? An open mortgage typically costs more because it allows clients to pay off the loan at any time without fees or penalties. It’s rare for a client to choose an open rate, usually only when the mortgage term has ended, and they request an open rate while finalizing their file with another bank. The open rate is also a good option if the term has just ended and the client knows they’ll be selling the house soon. They may opt for an open rate to avoid penalties when selling. This option offers more flexibility for managing and planning repayments. If you want to pay off the loan early, there’s no penalty. You’re also free to accelerate your loan repayment without extra fees. This option may suit you if you plan to repay more than 20% of the mortgage early or intend to sell your property well before the end of the term. It’s the perfect choice for those “allergic” to long-term commitments! This flexibility, however, doesn’t exist with a closed mortgage. In this type of contract, the term extends over several years. While an open mortgage lasts between 6 months and 1 year, a closed mortgage can range from 6 months to 10 years. However, longer terms aren’t as popular; the most common are the 5-year fixed and 5-year variable terms. With a lower rate than an open mortgage, a closed mortgage is ideal if you seek consistency in your loan amortization and are concerned about rate fluctuations (e.g., with a 5-year fixed rate). As you might guess, it’s the choice of those who want a stable, predictable relationship. A fixed-rate mortgage, whether open or closed, means that the interest remains the same throughout the mortgage term. This guarantees that monthly payments will stay constant regardless of fluctuations in the banks’ prime rate or market rates. This type of rate is ideal for borrowers who want long-term stability. However, in exchange for this peace of mind, fixed rates are generally higher than variable rates. Fixed mortgage rates are influenced by bond yields and current economic conditions. The variable rate is the opposite of the fixed rate (but you probably guessed that!). Unlike a fixed mortgage rate, it fluctuates based on the Bank of Canada’s prime rate, which adjusts according to economic conditions. When you choose a variable mortgage rate, the interest set by the bank or financial institution may rise or fall with the market. However, you can negotiate options like fixed payments or adjust repayments to suit your needs. Variable mortgage rates are often lower initially but come with the risk of rate increases, so assessing your risk tolerance is essential before deciding. A home equity line of credit (HELOC) allows borrowing up to 65% of your home’s market value. This type of mortgage product is usually open, offering flexibility for repayments. For example, you can choose to pay only the monthly interest on the line of credit. The interest rate for a HELOC is based on the amount used and fluctuates with market conditions, like the bank’s prime rate. Unlike a variable-rate mortgage, the HELOC rate includes a premium, making it generally more expensive. Thus, while flexible, a HELOC is costlier compared to mortgages. The HELOC rate is based on the bank’s prime rate, similar to a variable-rate mortgage. However, with a variable-rate mortgage, banks offer clients a rate discount on the prime rate, while with a HELOC, they add a premium to the prime rate, so the variable rate for a HELOC is always higher than a variable-rate mortgage. Unless you live in a Wi-Fi-free cave, you’ve probably noticed that the real estate market hasn’t been smooth sailing in recent years! For example, in 2020, amid the pandemic’s start, Canadians borrowed an additional $108 billion in mortgage products. This trend continued in 2021, with $57.2 billion in mortgages taken out in just the first quarter—a record! According to Statistics Canada’s annual report, 49% of mortgages were 5-year fixed-rate contracts. The government agency noted a significant renewed interest in variable-rate products, favored by historically low prime rates. The variable rate was around 2.20% for 5 years in 2021, compared to an average of 2.38% for the fixed rate. Since mid-2022, fixed and variable rates have significantly increased, reaching 4.84% and 4.50% by the end of 2022. What does the future hold? Nobody knows! However, the brokers at Distinction remain on top of trends at all times. The interest rate on your mortgage depends on several factors. Your repayment capacity, down payment, credit score, credit history, and employment outlook are all crucial. In recent years, banks have introduced the concept of insured, insurable, and non-insurable loans. Insurable and insured loans qualify for better rates. For more information, check out our blog post. Timing also matters: shopping around early allows you to gather essential information to compare the best market offers. Working with an experienced mortgage broker is also an advantage. Multi-Prêts brokers, well-connected with major banks and financial institutions, help you obtain custom mortgage financing, whatever your profile. We’ll help you develop a strategy that maximizes your chances of securing the best mortgage rate possible. Get support from a professional with solid relationships with banks and financial institutions. Multi-Prêts brokers, including our team, are at your service! 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 — Banque HomeEquity — Pentor — Castleton — Nesto — Sagen — CMHC – SCHL — FCT — FNF — Canada Guaranty The best fixed mortgage rate depends on various economic factors, such as the Bank of Canada’s policy rate and bond yields. Fixed rates provide peace of mind by ensuring a constant mortgage payment throughout the term, regardless of market fluctuations. Mortgage brokers can help you find the best rate based on your situation, whether with major lenders like Scotiabank or credit unions. Fixed-rate mortgage contracts are especially attractive to those looking for stability over several years and who want protection against potential rate increases. The best variable mortgage rate fluctuates with the prime rate set by financial institutions, influenced by the Central Bank. These variable mortgages generally offer competitive rates upon signing, with monthly payments that may change according to interest rate fluctuations. Mortgage brokers can advise you on mortgage products best suited to your borrowing profile, considering factors like your credit score and debt ratio. A variable-rate mortgage can be a good option for those expecting short-term rate declines in the mortgage market. However, a flexible borrowing capacity is essential in case of rising rates. In Canada, mortgage rates are influenced by various economic factors, including the Central Bank’s policy rate and bond yields. Fixed rates are typically based on bond yields, while variable mortgages depend on the prime rate set by lenders, like the National Bank of Canada. Mortgage loans can be open or closed, with amortization periods varying between 15 and 30 years. Financial institutions often offer competitive rates based on your credit score, debt ratio, and down payment when purchasing a property. It’s recommended to stay updated on interest rates to secure the best personalized rate and reduce long-term mortgage financing costs.
The Best Mortgage Rate with Multi-Prêts Mortgages
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