9 Useful Facts about Alberta Lowest Mortgage Rates

When you’re looking for Alberta lowest mortgagerates with less than 20% down will be mortgaged at
rates, it’s important to know the most importanthigher rates.
facts about finding a good rate. Whether you are5. Low-ratio mortgages have less rigid requirements
looking for a new mortgage or to refinance, keep thethan other loans, which means that the interest rates
following mortgage facts in mind as you look forare also lower.
Alberta’s lowest mortgage rates.6. If you took a 40-year loan down to 35 years on a
1. Mortgage lenders consider your mortgage in arrearshouse worth $200,000 at a 6% interest rate, you’d
if you have missed more than three monthly paymentincrease your rate $41. However, over the long haul
dates within a year (thus, making it harder toyou could save up to $49,000 in interest with the
refinance).shorter term.
2. “Sub-prime” borrowers are considered by7. High-ratio mortgages that start the term with
lenders to meet lower than average industry creditinterest-only payments or home equity loans can also
standards. Typically, borrowers with a low credit scorebenefit from amortization reduction like the scenario
or state income will look for a sub-prime mortgage.mentioned above.
These rates are typically higher than other financial8. When your lender refers to “total debt
rates.service” ratio, it’s referring to the ratio of gross
3. “Near-prime” market is the section ofincome to debt and housing related payments.
borrowers that are close to the industry standard for9. With the purchase of mortgage insurance, a lender
lending, but are still a little below the mark.who would need to put 20% down might be able to
4. A “low-ratio” mortgage means that theput as little as 5% down with the purchase of
loan-to-value ratio is 80% or less. Typically, mortgageinsurance.