The increase in interest rates has been all over the news for months now, and it’s left many buyers feeling like they’ll be stuck paying a high interest rate for the rest of their mortgage. But just because rates are higher right now than they have been in recent years doesn’t mean that you’re doomed to pay excessive interest. Try these three interest rate hacks to get the lowest rates in our market.
Hack 1: Pay off your existing debt.
Before you start considering negotiating the terms on a sale, ask yourself, “Do I have any outstanding debt?” Asking yourself this question allows you to ensure their aren’t any “surprise” owing debts. Your bank advisor could help you guide you on any owning debts you may have.
Hack 2: Negotiate with multiple lenders.
Sometimes buyers are surprised to find out that every lender will offer you a different mortgage with different rates, amounts, and terms. This makes shopping around critical to finding the best interest rate for your mortgage. Interest rates can vary as much as several percentage points between lenders, so doing your research and negotiating with lenders will be well worth your time and energy.
Hack 3: Don’t take out any new loans/credit cards.
Chances are good that when you’re applying for your new home mortgage your bank is going to pull your credit history. As we all know with each credit history pull it can put a “dent” in your credit score. So, when planning to purchase a home, you want to ensure not to open/take out any new loans or credit cards, before/during the home purchase process. However, keep in mind that once the purchase of your home has finalized and you’ve moved in, you can choose to apply for loans/credit cards if you wish as the sale of your home is complete.
There are several different strategies that you can use to lower your interest rate, but these three are my favourite!
Want to talk more about interest rates and how you can get the lowest rate on your new home? Feel free to reach out to me anytime.
RE/MAX of Lloydminster