Calgary home buyers can save over $470 in five years with a 10 basis point rate savings on their mortgage. This is possible with insured mortgages, which can offer rates 10-25 basis points lower than uninsured rates. To qualify for the best prime mortgage rates, borrowers typically need to meet certain criteria, including a down payment of at least 20%.
Non-prime borrowers, on the other hand, may face higher rates and fees. These borrowers include those with a poor credit history, high debt-to-income ratio, or unconventional income. Non-prime mortgages can cost at least 100-200 basis points more than the best rates, plus lender and broker fees of one percent of the mortgage amount or more.
For Calgary buyers, sellers, and investors, understanding the mortgage rate landscape is crucial in making informed decisions. With the right mortgage rate, buyers can save thousands of dollars over the life of their loan. Whether you're a first-time buyer or an experienced investor, it's essential to explore your options and negotiate the best rate possible.
Sources: Financial Post