Like anything, when you compare you want to make sure you are comparing apples with apples, not apples to oranges.
Here are our tips when you are comparing mortgage interest rates:
1. are there any hidden fees?
2. what are the advertised rates for?
- Are they for owner occupied properties only? What if you have a rental property or wish to buy a cottage property?
- Are the rates valid for insured deals only? (i.e., mortgages typically with less than 20% down payment)
- For mortgages with a funding date within 30 days of application {also known as "quick close"}?
- Not applicable to pre-approvals (i.e., for real or live deals only)
- Are the rates for people with regular income (vs. self employed folks)?
those are just some examples...
3. do the policies of the bank/institution satisfy your needs?
- if you are military, rcmp or any transferable position, is the mortgage transferable across Canada?
- how are penalties calculated? Every institution does things differently!
- what are your mortgage payment options?
4. some institutions are better at some things than others...here are a few examples!
- your favourite bank may be the most cumbersome choice for a construction mortgage
- the top institution for ease with purchasing raw land may surprise you!
- if you'd like to buy a mobile home, there are only a few who excel at chattel mortgages
5. does the institution have a good reputation for service?
6. are there any cool perks?
- for example, if there are two banks offering both the same rate, one bank may have a free home warranty program or another may offer free banking
