On average, you tend to pay off your mortgage 4 or 5 times over throughout the duration of your life. A slight adjustment in your mortgage Canada rates can make as much of a difference as $50,000 in your pocket for the life of that mortgage. That's why it's extremely important that you get the best possible mortgage rates. Failing to do so will result in your bank overcharging and lost income for retirement, vacations or extra trips to your local watering hole. To each their own. Here are 3 mistakes you'll want to avoid.
1. Fixing your credit errors
Recent studies have indicated that as many as 79% of credit bureaus contain errors on them. Banks are more apt to giving a better rate to someone with great credit. Verifying your credit with both bureaus (Equifax and TransUnion) is free once per year. You'll not only want to check the accounts you actually have but the details of that account as well. Common errors include accounts that aren't even yours, spelling mistakes, incorrect missed payments, incorrect balances and accounts that have been closed being still listed open. The good news is that you have recourse. Send a letter to both Equifax and TransUnion with the details of the payment issue. They are legally required to respond to problem within 30 days.
2. Listening to your bank
Banks make money from the Canada rates by upcharging. For high network and perfect credit type individuals, banks generally do favours. For the rest of though, they tend to only offer what they think sounds still reasonable to you. Banks want you to take what's offered and not shop around. This is especially true if your credit is blemished or if your employment situation is complicated. A slight curveball means that you're best to seek the advice of an experienced mortgage broker.
3. Not using lenders against each other
Lenders only make money if they give you a loan. Believe it or not, they want your business. Never be afraid to go back to one lender and show them the offer you have from another. Often they'll do something extra to beat it. Also there are great new systems, like Canada Rates online database that can automatically shop lenders for you for free. Without making a formal inquiry, you can automate this using lenders against each other.
Make sure to follow these steps on your next mortgage so you don't leave money on the table.
