Are you paying too much on your mortgage?
Matrix Mortgage Global – Are you paying too much on your mortgage?
Close to a quarter of Canadians may be paying higher rates on their mortgages than they need to, simply because they aren’t comparing mortgage rates before they choose a lender. This is according to a recent report by LowestRates.ca.
The least likely demographic to compare rates, according to the report are Baby Boomers with an astounding 33% not doing any research at all. Geographically, those in Quebec, Atlantic Canada, and British Colombia were the least likely to compare rates.
When the Bank of Canada raised its interest rates on July 11th however, it did spur more Canadians to do some research before choosing a mortgage lender. After the hike, 47% of mortgage shoppers polled spent a minimum of one hour comparing rates.
If there are more hikes in the near future, we may see an even larger increase in Canadians shopping around and comparing mortgage rates and terms before they commit to a lender. A recent poll by CIBC showed that 72% of Canadians believe that the Bank of Canada will raise its rates again in the near future. Despite this, only slightly more than half of Canadians say that they would definitely opt for a fixed rate mortgage if they were signing papers today.
The fact that most Canadians are comparing rates when they shop for a mortgage is a good thing, but there is still some way to go.
The best way to ensure that you are getting the best possible rates and terms for your mortgage is to work with an experienced mortgage broker. Unlike banks and other financial institutions that can only sell their own products, mortgage brokers work with a large pool of lenders and they can shop around on your behalf to help you find the best rates and the type of mortgage that best suits your needs.
It should go without saying that if you do not compare rates, it is likely that you will not get the best rate. This is especially true in the case of mortgage renewals
because many lenders will simply assume that you will renew with them without shopping around first. This gives them little incentive to offer their best rate when they send your renewal letter.
If you are currently in the market, do not be like the 24% of Canadians that do not do any research. Call the team at Matrix Mortgage Global today at 1-877-380-2945 and let us do the shopping for you!