December 13 2022
At Homewise, our team of mortgage and real estate professionals is constantly speaking with and assisting Canadians who are looking for the best mortgage and home that aligns with their needs. Whether you’re a first time homebuyer or thinking about refinancing, we have the answers you need.
What's the difference between getting a mortgage through Homewise vs. my bank?
At Homewise, we deal with over 30 lenders including major banks, monoline lenders and credit unions to offer the best mortgage products that suit our clients’ specific needs. This also allows us to search through various lenders to find the best features and lowest rates. If a client goes straight to their bank, they will only be advised on that bank’s individual products — leaving out often more suitable options being offered across the industry. This not only limits your chances of saving money, but it eliminates the opportunity to learn about some really great mortgage features that could benefit you.
Are you able to offer better rates than my bank?
Yes. On average, we are able to provide mortgage rates that are 10 to 15 basis points (0.1 to 0.15%) lower than what the big banks can provide. At Homewise, we help clients shop around for the best mortgage in the marketplace – with the ability to search through big banks, credit unions and monoline lenders. Shopping around allows us to give clients a better rate than what they’d typically be presented at their bank, as well as offer unique options like increased affordability, tailored features and options for approval if clients were turned down elsewhere.
Is there a fee for using the services at Homewise?
Our services at Homewise are completely free for Prime A mortgages. This includes the mortgages we provide with the best rates and features. However, if we have to use alternative lenders such as B lenders or private lenders, there may be a fee associated with it as they are considered to be unique mortgages.
Given the current market environment, do you recommend going for a fixed rate or variable rate mortgage?
Based on a client's profile and how risk-averse they are, we would typically recommend going for a fixed-term product under the current market conditions. Rates are on an upward slope and fixed-rate mortgages are a less riskier option. With all that said, it really depends on what is happening in the market and what fits the client’s short and long-term needs.
To learn more about the difference between fixed and variable rate mortgages, watch our Mortgage Academy video.
How long should I lock in my rate for?
Based on macro level predictions by many industry professionals and economists – in the current market during November 2022 – it may be best to go for a shorter term product such as a two-year or three-year fixed term. Currently, more Canadians are taking this approach as rates have the potential to drop over that period due to a looming recession and inflation that will hopefully be in better control by 2024
At Homewise, our goal is to make the mortgage process as simple and stress-free as possible for our clients. Whether you’re a first-time home buyer or looking to refinance or switch, our team is happy to answer all of your important questions. Contact us today to learn more or start the process by getting pre-approved, approved, refinanced or switched in just five minutes here.
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