Shopping around for a better mortgage rate is very common, and often encouraged. It’s obvious; people don’t want to pay a higher rate if there’s a lower one available! Getting the best mortgage rate can be a competitive feat – clients want to be sure they got the best mortgage rate possible.
However, it’s an irrelevant topic. Mortgage rates change often, and each client’s situation is different!
Banks and other lenders advertise their lowest rates, in an attempt to attract clients, but there’s almost always a catch. You’ll likely see a little asterisk next to their ‘great deal’ with a note that says “OAC” — OAC stands for “on approved credit”. This means that banks and lenders can advertise any rate they want but, in reality, many people don’t qualify for the advertised rate. What really matters is that the client receives the most suitable product and the best rate that they qualify for, given their personal circumstances.
- Good credit (680+)
- The amount of income earned minus how much debt is owed (aka, the net difference of how much income is applied towards debt). This is what banks will use to determine your qualification.
- The types of risk do you hold in a financial perspective. For example being self employed.
- Your employment situation, i.e full-time, contract, salary, probation, part-time, part-time permanent, commission, and so on.
- The amount of time you’ve been employed at your current job.
These types of questions will dictate which products and rates you will qualify for. There may be additional factors on top of what is listed above, depending on your situation. This is our asterisk moment: consult a professional to ensure you prepare all of the factors relevant to your situation.
"What's the Best Product and Rate I Qualify For?"
The better question to ask your broker is, “What is the best product and the best rate that I can qualify for, given my situation?”
Need Help Finding the Best Product and Rate for Your Situation?
Contact Solid Ground Mortgage Solutions to speak with an experienced and licensed mortgage agent!