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Welcome to Homebuyer's School brought
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to you by Brookfield Residential.
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Hi everyone, welcome to another edition of Homebuyer's School, today I'm joined
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by Mutjaba Syed, manager mobile mortgage specialist with
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TD Canada Trust, and today the question we're gonna answer is,
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What are the differences in mortgage rates between banks?
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Yeah absolutely, so every bank has what they like to
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call their "discounted off their posted rate", and most of the time it's
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done to attract new business and new clients. Most banks we find are
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technically in line, there might be a slight difference in rates - a little bit
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better a little bit higher, really depends on what the bank is trying to do at that
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time, just to raise capital and to attract clients.
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So how would I go about finding the best mortgage rates between the banks?
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Yeah absolutely, I think the
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best thing to do is to definitely shop around, with technology these days
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you can then go on the internet, do a quick search and see what the best rates
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in Canada are. Every bank technically has their posted rates posted on their
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website, a good idea to maybe look before you're booking your appointment
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is to go online and see what rates are offered by that certain bank, or if you
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feel like another bank has a better rate sometimes banks are actually matched
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through competitive competition so it's a good idea to know what the competition
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is before talking to your bank as well.
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So Mo, when is the best time to look for the best mortgage rates?
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Is it a specific time of year or is it
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all year round just depending on which banks provide the lowest rates?
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Yeah absolutely, so in my opinion mortgage rates are very seasonal, so we
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do feel mortgage rates are technically a little bit higher around November til
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about January-February which is the winter months. The real estate market
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slows down, purchases slow down, like house buying activity slows down and
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then we actually see a little bit--the market pickup around springtime
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which is called "spring market", and rates technically do
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tend to come down a little bit lower at that time just to encourage people to get
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into the market and purchase a little bit more.
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So with the new mortgage rules
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in Canada--and you can watch our video with the link above--how does that impact
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the difference in rates between the banks?
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Yeah absolutely, so the stress test
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technically has nothing to do with interest rates currently where they're
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posted. Interest rates are going to be determined all different factors, it can
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be determined where the economy is if the economy is doing better, or it's
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gonna be a little bit higher if the economy's doing not so well, the rate
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could be a little bit lower, the stress test is just for qualifying purposes to
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see exactly how much you qualify for a mortgage. Once you qualify for the
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mortgage you can get technically any rate that you want and at that time it's
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best to shop around to see what rates are offered by different banks. Different
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banks have different rates based on whatever discount they're willing to
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provide or wanting to provide to get your business.
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So Mo, do you have anything else to add?
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Yeah I would say definitely the best thing to do is speak with your lender,
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speak with your bank or your specialist and see what's best for you,
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what kind of rates are best for you and and just definitely shop around, try to
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get yourself the best rates. Go online and shop your bank or your specialist
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with the competition to see if there is a better rate out there for you.
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Perfect, well thank you very much Mo, thank you very much everyone for
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joining us. Remember to watch our video on the new mortgage rules in Canada,
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have a good day!
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That's another edition of
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Homebuyer's School, tune in next time for
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more expert tips and tricks and
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visit homebuyersschool.ca to bring you
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one step closer to finding your
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dream home. As with everything it would
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be great if you like and share our videos,
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also please let us know if you have any
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home buying questions you
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want us to answer.