Allison Cosgrove, the Blue Jean Mortgage Queen providing solutions and results for homebuyers in Mississauga, the GTA, and Golden Horseshoe areas, is known for her open, honest, approachable service for home buyers and sellers. With interest rates top of mind for those looking to buy this summer, she is happy to share her advice.
“As of June 16, 2023, the prime rate is 6.95 per cent. This is also known as the ‘prime lending rate,’ the one that affects variable loans, including variable-rate mortgages,” says Allison.
“The prime rate can have a significant impact on homebuyers. As the prime rate increases, so does the cost of borrowing money for a mortgage. This means that homebuyers will have to pay more in interest over the life of their loan, increasing their total cost of ownership. In addition to higher interest rates, homebuyers may also find it harder to qualify for a mortgage due to stricter lending criteria put in place by banks and other lenders.”
It sounds dire, but the outlook for buyers is still ripe with possibilities.
“The good news is that there are still ways for Canadians to save money on their mortgage. Taking advantage of government programs such as the First-Time Home Buyer Incentive can help reduce monthly payments and make homeownership more affordable. Another solution is to work with a mortgage broker,” Allison says.
A broker provides:
More Options: Mortgage brokers have access to a variety of lenders and mortgage products, giving you more options to choose from. This allows you to compare rates and terms from different lenders and find the best deal for your unique financial situation.
Time Saving: Applying for a mortgage can be a time-consuming process, but mortgage brokers streamline the process. They handle all the paperwork and communication with the lender, saving you time and hassle.
Expertise: Mortgage brokers are experts in the industry and provide you with valuable advice on the home buying process. They help you understand the different types of mortgages available, explain the application process, and offer guidance on how to improve your credit score.
No Cost: Working with a mortgage broker doesn't cost you anything. Brokers earn a commission from the lender, so there's no out-of-pocket expense for you. You get all this expertise and access to the market and lenders at zero cost.
Allison concludes, “Brokers work for you and have your best interests at heart. In a challenging market, brokers not only know the inventory, but also how to match you with the best lending solution for your needs. I truly love helping my clients with real-time solutions, knowledge, and understanding. Whether you have questions or are ready to buy, please get in touch.”
