The mortgage war is back in full flow and after the Bank of Montreal’s decision to slash mortgage rates down to 2.99% it can seem like the perfect time to look at buying a home. But is there more to it? Should you be concerned or pleased with the latest huge reduction in mortgages?
There’s an old adage that many of us live by: if something’s too good to be true then it probably is – and that probably sums up the latest news in the Canadian mortgage industry. In fact, instead of being pleased, many commentators are questioning whether it’s a case of trapping families or simply a case of covering up losses by getting people signed up for mortgages.
Didn’t low mortgage rates lead to the economic downturn?
One thing that many notice from this idea is that the housing markets, and particularly the low rates offered in the USA, were basically the tipping point for financial meltdown. So, with this in mind, it seems that we didn’t learn many things and are risking our long-term welfare in order to secure short-term success.
That said, as long as you consider all of the options and check the extra charges to the mortgage, it may well work for you. Ultimately, this would be a risk to the homeowner, and it depends what your outlook on life is. If you look at it as various blocks, and sort of work by a five-year plan at a time then it could be right for you – but, generally, BMO has received bad press for this announcement and the other banks have had to follow suit just to compete.
How do you find the right mortgage?
With many people seeing this announcement as banker’s suicide, it’s important to know where you should be looking for your loan. Plus, these special offers aren’t likely to last long so it is crucial that you know how to find what you are after normally.
As we know from this latest announcement, the banks are scared for their market share and rightly so. While many people can get deals by directly going to the lender, most people prefer to use online comparison websites so that they can compare the whole market.
Don’t worry though, while the rates might not be this low, over the long-term you can get everything back that you may lose short-term. By using a mortgage calculator for Canada you can find the best deals based on whatever your wants and needs are. Find out what happens when you pay a deposit and don’t get stuck with extra charges that you couldn’t see previously.
What you need to do is find a site that comes with mortgage brokers right there for your needs. Getting the correct information and advice is crucial to ensuring the best deal for you, your family and your future.
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Posted by Michael Edmondstone, a sponsored guest post
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