When buying a home, people normally take mortgage into consideration. Mortgage comes in two main categories, namely fixed rate or variable rate. Each offers a different set of advantages. However, in The Huffington Post Canada, writer Romina Maurino reports of a recent development that could likely change the way homebuyers see things.
“Scotiabank (TSX:BNS) is the latest lender to create waves in the mortgage market after lowering its special fixed five-year rate to 2.97 per cent, the lowest fixed rate among the big banks.
The rate is effective until June 7, and comes amid growing competition for mortgages that have pushed rates down in recent months.”
With this latest development, homebuyers in Vancouver will likely be encouraged to take advantage of the opportunity, and look quickly into their options in Kitsilano houses for sale. It’s also possible that those who put their plans of buying a home on hold due to high interest rates will rethink their decision now that things have taken a positive turn. However, with such attractive rates, there is the risk of borrowing too much. Below is a guide to home-shopping under a fixed- rate mortgage.
Homebuyers should organise all their financial records to have a clear idea of where they stand. These documents include bank statements, tax returns, payslips, investment accounts, and credit or loan billing statements. However, if homebuyers have an outstanding car loan which they are having difficulty paying off, it indicates that buying a home is not in their cards at the moment.
Homebuyers who are tight on money don’t necessarily have to put off their plans to buy a home. They can look into alternatives like great Kitsilano condos for sale that give them the benefit of living in a thriving and vibrant community without costly monthly mortgage payments.
Lock in a rate.
The housing market is volatile. No one can say for sure that things won’t change next month. Thus, if homeowners are confident with their financial situation, it’s smart to lock in a rate as soon as possible.
When buying a home, there are a multitude of things to consider, one of the most important of which is mortgage. Banks offering low rates for fixed rate mortgages is certainly good news. However, for home-buying to be a hassle-free process, people should turn to reliable real estate agents like the ones from Vancouver Canada Homes. Professionals in real estate provide buyers the most recent property listings and negotiate good rates for these buyers.
(Source: Scotiabank’s Fixed 5-Year Mortgage Rate Now Lowest Among Big Banks, huffingtonpost.ca, May 28, 2014)