Education Centre
Mortgage Calculators
Best Mortgage Rates in Brantford 2021
Over the years, the city of Brantford has become the hub of a generational shift in the golden horseshoe. Located southwest of Hamilton, the community is growing at a rapid pace. People looking to escape the downtown bustle of Toronto and are priced out of the Toronto suburbs have been moving to this quiet enclave in droves. A young and vibrant town filled with families and young kids has emerged from a sleepy retirement community. The city is booming, which means that real estate and mortgage rates are at the top of people’s mind.
A little about Brantford, Ontario
Brantford, Ontario, is located on the Grand River banks and is a fully independent municipality in the golden horseshoe. The community has long been connected with manufacturing and is home to Proctor and Gamble and Ferrero Spa. Recently, the community approached and surpassed 100,000 people, and it keeps growing. With more and more Hamilton or Toronto-based people moving to the community, the communities connection to the 403 highway has become a vital link for daily commutes. Brantford is growing, and the real estate business is booming in the area.
With that in mind, we have been answering quite a few questions on mortgage rates, interest rates and, of course, everything about mortgages. That is why we have put together the following FAQ segment. From mortgage brokers to the difference between variable rate mortgages and fixed rate mortgages, we answer it all!
Is it worth getting a mortgage pre-approval?
A pre-approval is not a necessary step in the real estate process, but it certainly is a valuable tool during your search. Pre-approvals provide you and your realtor with some flexibility and knowledge of your maximum purchase price and your mortgage amount. Typically, the big five banks are the fastest when it comes to turning around pre-approvals. For instance, Toronto Dominion (TD) service standard is less than 48 hours for pre-approval. This information will empower you during your search and allow you to have the following:
A locked-in rate
Pre-approvals are an agreement between you and the credit union, bank or specific lender to guarantee a particular rate between 90 and 120 days. This locked-in rate will depend on your rate type, but both variable and fixed is available from lenders. You are not locked-in to use the pre-approving lender. Instead, this pre-approved number will remain active and provide you with a baseline to shop around your mortgage once you find a house.
You get your complex numbers
In a competitive market like Brantford, knowing your budget will allow you to bid on homes with confidence. Mortgage pre-approvals not only provide you with your proposed monthly mortgage payments it also provides you with some insights on your maximum home price. These numbers will help guide you in the bidding process and provide you with the ideal purchase price and where you have wiggle room.
Confidence in your financing
In the competitive Brantford market, you should always be looking for a leg up during bidding. Finding this leg up can be challenging, but a pre-approved rate could help you in this process. As your financing has already been pre-approved, you could remove the financing condition on your bid if you would like to. Bidding without a financing condition is a risk, as a pre-approved mortgage is not a guaranteed mortgage. However, removing that condition may provide you with the flexibility to put in a competitive offer without conditions. It is best to chat with your broker and your agent to see if this is the best course of action, but having the pre-approved loan in your back pocket is undoubtedly an excellent thing to have!
How much can I save by comparing Brantford mortgage rates?
The amount that you can save when you compare mortgage rates in Brantford will depend on several factors. Many who do the process can save hundreds, if not thousands per year, on their mortgage costs in Brantford by comparing current mortgage rates with multiple lenders.
When you are thinking about securing your next mortgage, one of the most important things you can do to get the best rate is to compare your rate! Brantford is a competitive market, and no matter if you are a first-time homebuyer or are an experienced buyer, comparing your rate is an essential first step.
The reason for comparing rates is a simple one; each lender is going to be slightly different. Although each lender bases their specific rate on the prime rate, the various fees and costs will vary between the lenders.
Further to this, the advertised rate used in commercials and other media is announced; it is not the exact rate you will secure. The actual rate usually will differ based on various factors such as your credit rating, purchase price, loan amount and an assortment of other factors.
As each lender differs, and each client is slightly different, comparing your rate is an essential part of the process. Shop your mortgage around or use a mortgage broker, and see what other rates are out there. You do not need to sign with a big lender; you have an option. Simply put, if Canadians took the time to compare their rate, you could see thousands of Canadians a month save hundreds, if not thousands of dollars over the term of their loan.
Get Your Best Mortgage Rate Today
Are Brantford mortgage rates higher than other cities?
No, Brantford rates are not higher than other cities across the golden horseshoe. The reason for this is simple, Brantford is a hot market, and lenders are very competitive in desirable markets. As competition is the number one driver of rates in a specific city, competitive markets can practically guarantee they will be home to the lowest rates. Thus, Brantford residents can save money and make better decisions with their home purchases, and lower overall mortgage payments.
Which bank has the best mortgage rates in Brantford?
Unfortunately, there is no single bank that will provide you with the best mortgage rates. The reason for this is the specific fees, and interest rate that an individual can get at lender x will vary differently from another individual. You see, lenders utilize several factors in calculating your specific interest rate. They want to consider the purchase price, amortization period, mortgage payments, credit score, mortgage term and loan type. It is a complicated process, and it is why every lender will be a little different. A rule of thumb is that the big five banks provide a bar for other lenders. Specific lenders or a credit union may meet or undercut that bar, but the big five will keep that bar as high as they competitively can to make the most amount of profit. Thus, as we say up above, you need to compare and shop around your mortgage to find the best rate!
Should I use a mortgage broker in Brantford?
Yes! Mortgage brokers are one of the best tools that are at your disposal during the real estate process. Whether you are looking to get a pre-approval or are trying to find the lowest interest rates, a mortgage broker can be the guiding professional throughout the process.
Mortgage brokers across Brantford have access to hundreds, if not thousands, of mortgage providers. With this access, your broker can find the lowest rates with ease. Plus, as brokers are independent, there is no pressure to use a specific lender. Brokers work for you, and their sole focus is finding you the right lender for your mortgage.
But, do you know the best reason to use a mortgage broker? They are entirely free for you to use. That is right; mortgage brokers charge your lender, not you, for their services. Thus, using a mortgage broker is a zero-risk activity that will end in you with lower mortgage rate for years to come.