Dominion Mortgage Pros

When it comes to navigating the world of mortgages, staying informed is key, especially now that mortgage rates in Canada are on the move.

At Dominion Mortgage Pros, we understand how important it is for home buyers in Edmonton to strategize effectively when making big financial decisions. Let’s break down some of the best strategies for home buyers in a changing rate environment, so you can feel confident and prepared for your journey.

Understand the Current Market

As of now, we are seeing a trend with lower mortgage rates. Just recently, we’ve launched new rates with a 5-year fixed at 3.74% and a 5-year variable at 3.95%. This shift presents an excellent opportunity for buyers looking to purchase their first home or refinancing their existing mortgage. It’s crucial to do your homework on how these rates compare to the historical averages. For instance, the average 5-year fixed mortgage was around 4.99% in 2022. By knowing the market, we can make more informed choices.

Consider Timing for Your Purchase

In a fluctuating interest rate environment, timing is everything. We recommend keeping a close eye on rate changes and trends. If you see a dip, it might be time to act. Use the uncertainty to your advantage by securing a pre-approved mortgage. This allows you to lock in today’s rates while you shop around for your dream home. It also gives you a clearer budget and conveys to sellers that you’re a serious buyer.

Refinancing with Purpose

If you already own a home and are thinking about mortgage refinancing, the current rates could offer significant savings. Refinancing isn’t just about getting a lower rate; it can also help you access equity, make renovations, or consolidate debt. When considering refinancing, remember to weigh the costs involved against potential savings. A good rule of thumb is if you can lower your interest rate by at least 1%, refinancing is often worthwhile. We can help you navigate this process to find the best options.

Understanding Pre-Qualification vs. Pre-Approval

Many individuals confuse pre-qualification with pre-approval. At Dominion Mortgage Pros, we want to clarify this for you:

• Pre-Qualification: This is an estimate of how much you can borrow based on a brief financial overview. It’s a good starting point but holds no weight in a competitive market.
• Pre-Approval: This is a more detailed review of your finances that indicates how much your lender is willing to offer. With a pre-approved mortgage, you’ll have a more accurate idea of your budget and a stronger bargaining position when making an offer on a home.

The Role of Mortgage Brokers

Navigating the mortgage landscape can feel overwhelming, but that’s where we come in. Using an Edmonton mortgage broker like Dominion Mortgage Pros means you have someone on your side to help navigate the complexity of mortgage options—and even help you find the best rates.

We act as intermediaries between you and lenders, providing access to a broader range of mortgage products than you might find on your own. Furthermore, our expertise will ensure you find a mortgage that fits your financial situation without hidden fees or surprises.

Mortgage Underwriting Made Simple

Once you’ve applied for a mortgage and provided the necessary documents, it goes into underwriting. This is where lenders assess the risk of lending to you. They’ll evaluate things like your credit score, income, and the loan amount. The way you present your financial profile can make a huge difference, which is where working with an experienced mortgage broker can provide you an edge—guiding you on how to present your best financial self.

Know Your Budget

As you consider your mortgage options, don’t forget to factor in expenses beyond the mortgage payment itself. As a homeowner, you’ll also be responsible for property taxes, insurance, and upkeep costs. A good rule of thumb is to keep your housing costs at or below 32% of your gross income to maintain your financial stability.

Final Thoughts

In this dynamic market, being informed and prepared makes all the difference. By understanding mortgage fundamentals, utilizing the expertise of mortgage brokers, and taking advantage of pre-qualifications and current rates, we at Dominion Mortgage Pros are here to empower you in your home buying or refinancing journey.

Let’s make your experience not just potential, but achievable. We’re here to help you every step of the way. Whether you want to explore our pre-approved mortgage options or have questions about mortgage refinancing, we’ll ensure you navigate these waters with ease.