The Bank of Canada (BOC) decided to hold interest rates today. However, that doesn’t mean interest rates will continue to decline.
If you are wondering how you’ll ever be able to buy a home in this tough market, here are my strategies to score a lower interest rate on your home purchase:
#1 – Go for a shorter-term 15 or 20-year fixed mortgage instead of a 30-year term. The shorter timeframe earns you a lower rate, if the payments fit your budget.
#2 – Pay down bad debt and credit cards to improve your debt-to-income ratio. The lower your DTI, the better rate you can get.
#3 – Boost your credit score above 750 by making payments on time, limiting credit checks and paying down balances. Excellent credit means better mortgage rates.
#4 – Save up more of a downpayment. Consider downsizing your rental home, or move-in with your parents for one year. The average rent is $2500 x 12 = an extra $30K for your downpayment.
With the right prep work and mortgage expert, you can land a lower rate and monthly payment on your home purchase. Let’s connect to explore options!