Mortgage Blog

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Best mortgage rate – new home

Key Takeaways

  • Buying a home offers many advantages over renting a home
  • Strategies for buying a home include saving for a down payment, having a clear idea of your finances and getting mortgage advice from an expert
  • There are several factors that impact the interest rates offered including your credit score

That time of life has come. You need more space for a growing family; you have to move to start a new career; you want to invest in a growing real estate market or you are tired of renting. It’s exciting since it means a new beginning, freedom to own your own space, and an investment in the biggest asset of your life.

Buying a new home is a big decision that takes time and can be stressful without the right kind of help and assistance. It takes research, help from experienced real estate agents, and excellent mortgage advice and guidance – especially when it comes to getting the best mortgage rate.

Getting the best mortgage rate for new home in Ontario

Buying a house in Ontario

When you consider purchasing a new home, you want to ensure that you are prepared. If you have been renting, you need to consider the following:

How long are you planning to live in your new home?

Many experts would agree that if you get a competitive mortgage rate and purchase what you can afford (try our affordability calculator), and if you stay in your home for more than a few years, you will be able to take advantage of rising property values.

Tax advantages of owning a home

Making money in your home gives you many tax advantages that you can’t get with renting, and according to Karen Yolevski of Royal Le Page, “Owning a home is widely viewed as a means to save money and build equity.

You won’t get evicted if you own your home

Evictions are always a problem if you rent. If the property is being sold, renovated or being included in a land assembly, as often happens in Toronto and Vancouver, as a renter, you are at risk of being evicted.

You can save more money

You can also typically save more money over time since you have to save up for a down payment and be paying mortgage payments. Rather than paying a bank, you will be paying yourself as you pay down the mortgage and gain equity in the home.

For example, according to a recent study, rent in Ontario went up on average 4% per year from 2014 -2021, whereas the value of homes increased more than 11%. That is home equity that goes to you instead of your landlord (see this recent Rent vs Buy report).

While it may feel less flexible to own, the long-term potential gains are well worth it

Once you are ready to buy, it is important to start looking at cities that you may wish to live in or neighbourhoods that you would enjoy being in. In Ontario, cities such as Toronto, Ottawa, Hamilton, Mississauga, and Brampton are some of the fastest growing housing markets. Sometimes your job dictates where you live, but there are times when starting somewhere new is an exciting change. In the end, you need to decide what works best for your life.

Helpful strategies for buying a home in Ontario

1. Save up for your down payment

When you are ready to take that step and buy your house or condominium, having a good strategy helps. Start by saving for your down payment. There are also several government programs in place in Ontario to assist you if you are a first-time home buyer:

If you can develop the discipline to save for a down payment, you can handle mortgage payments.

2. Review your finances

Look closely at your finances to ensure your income is steady and you have built up some savings. Be proactive with your credit score by doing things such as avoiding late payments, maintaining a good credit history, and limiting credit inquiries on your account. With our helpful mortgage affordability calculator, you can see how much of a mortgage you can afford to take on without causing you too much stress.

3. Get some mortgage advice

It is important to get the best advice to help you along your journey to buying a new home. There are many things to consider, such as choosing the right kind of mortgage (variable, fixed and other options), researching to get the best interest rate, and deciding on the best term for your mortgage.

Big banks make the mortgage process stressful with inflexible lending rules, strict assessment of your income, and ensuring they look after their own interests. Working with us at Mortgage Maestro, you get access to non-biased financial advice, access to competitive rates and custom mortgage solutions. Contact us to learn more.

How to get the best mortgage rates in Ontario

When buying a house in Ontario, you want to ensure you get the best mortgage solution and mortgage rate you can.

There are several factors that affect your personal interest rate. This includes:

  • the type of mortgage—first time, renewal, line of credit or refinance
  • down payment—less than 20% down requires mortgage insurance
  • purpose of the property—to live in it or to rent it out
  • amortization period—up to 25 years to pay off your mortgage
  • your credit rating

It’s a lot to keep in mind, but expert advice makes it manageable.

Getting through all the steps and passing the mortgage stress test for financing can be a lot to go through on your own. It is important to get a good understanding of what you can afford to buy and then consider your monthly mortgage payment.

Our affordability calculator and our mortgage calculator are among the many useful tools available for you to see what type of financing is possible and to help you along the way. Working with a mortgage broker can help to ensure the best interest rates and custom mortgage product to fit your life.

Your mortgage at your convenience

To get the best mortgage rate for your new home in Ontario and start the journey to becoming an owner, Mortgage Maestro is here to help. With years of lending experience, custom mortgage products and unbiased advice, we can help you find the financing solution that is best for you.

Our mortgage broker assisted solutions can guide you along the path to owning your own home by getting you competitive interest rates from multiple lenders, and choosing the best custom mortgage products.

A quick application will help us find the right mortgage for your needs, connect you to our mortgage experts, and get our team working with you to complete the mortgage process.

Our team at Mortgage Maestro are here to help you get your dream home. Click on the Apply now button, today and get started.