Posted: 15 Aug '17

What Is An Ideal Mortgage Rate And How Can Dominion Lending Centres Help You Get One

If you have been planning to leap into home ownership, you most definitely might be seeking to close your first mortgage. The first instinct is to compare as many lenders as possible. However, landing a great rate takes more than comparison shopping.

Mortgage rates can vary by a couple of percentages depending on several factors. The difference affects your monthly mortgage payments and your overall interest charge. With that being said, these are the factors that will determine your mortgage rate.

Credit Score

Your credit score will determine if you qualify for a mortgage and the rate applicable. This translates into an inverse relationship where the lower your credit score is, the higher the rate you will have to pay.

With all things equal, the best rates are available for those with a credit score of 760 and above. However, with the help of Dominion Lending Centres you can also get great rates even with a lower credit score.

Stable Income

If you can prove that you have had a steady source of income for two consecutive years, you stand to get a lower mortgage rate. This works better for people with formal employment although you can also use tax returns to document your self-employment.

Down Payment

All things equal, a down payment of at least 20% of the purchase price of your home will land you the best mortgage rates. On the other end, a mortgage with 5% down payment is considered riskier and will in addition to a higher rate, attract a private mortgage insurance.

Cash reserves

How many months of mortgage payments can you make with your current cash reserves? The standard is two months, but riskier mortgages have a higher cash reserve requirement.

How to get the best mortgage rates with Dominion Lending Centres in Edmonton?

After mastering the above factors, it’s time to do comparison shopping for the best rates. However, you will have a better chance of getting your ideal mortgage rates with guidance from an experienced mortgage broker.

Dominion Lending centres has been helping Edmonton families to finance their dream homes easily and conveniently for years. Backed by industry-leading mortgage brokers, Dominion Lending centres is a trusted partner to help you get the best mortgage rates in Edmonton. Contact Dominion Lending Centres today to have a discussion with an expert about ideal mortgage rates in Edmonton.

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