How Mortgage Interest Rates Work

Are you not getting the interest rate that you want from a lender? Maybe you can get a better interest rate or maybe you do not understand your mortgage profile.

Lenders look at many factors when deciding what interest rate to offer you for your mortgage. Such things as income, credit score, credit history, others debts that you have, the property itself, assets that you have, liens or collections, loan amount relative to the property value, etc. There really is an almost endless list of criteria that a lender can look at to determine your mortgage interest rate.

Mortgage insurance is also a factor when determining interest rate. If you pay the mortgage insurance premium (when putting less than 20% down payment on a purchase), which protects the lender in case of default, then you can expect to get a better interest rate compared to uninsured products.

The better your mortgage profile, the better interest rate that you can expect. Excellent credit, excellent income that is well documented, good savings with few other debts is an example of a mortgage profile that can get the best interest rates on the market.

Poor credit and/or low income that is not well documented with many other debts and no assets is an example of a challenging mortgage profile that you can expect high interest rates and high fees.

There are hundreds of mortgage products and criteria that are evaluated by lenders to determine your mortgage interest rate.

Do you want to know what your mortgage profile says about you? Talk to an experience mortgage broker who can explain where you fit into the mortgage market.

Contact Us
For more information on mortgage interest rates, contact your local Ajax Mortgage Broker, Sean Stewart at 905-427-9596 or sean@seanastewart.com